corporate opportunity


corporate opportunity
n.
The opportunity available to someone closely related to a corporation to use corporate information or appropriate corporate business opportunities for his or her own personal gain; the corporate opportunity doctrine prohibits this kind of opportunism.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


corporate opportunity
A business opportunity that becomes known to a director or officer of a corporation or LLC due to his or her position within the company. The director or officer owes a duty of loyalty to the company not to use the opportunity or knowledge for his or her own benefit unless the company gives its permission.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.

corporate opportunity
n.
   a business opportunity which becomes known to a corporate official, particularly a director or other upper management, due to his/her position within the corporation. In essence, the opportunity or knowledge belongs to the corporation, and the officials owe a duty (a fiduciary duty) not to use that opportunity or knowledge for their own benefit. The corporation may have the right to damages (to be paid off) for such improper appropriation (use) of the opportunity on the theory that the official holds it in "constructive trust" for the corporation. The corporation may obtain an injunction (court order) to prevent someone's use of the knowledge or opportunity. In such cases angry stockholders may bring their own legal action for their benefit in what is called a derivative action. Such insider misappropriation (inappropriate use of information) may also be criminal theft, or be violative of federal or state securities laws.

Law dictionary. . 2013.

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