Court Of Chancery Explains Corporate Opportunity Doctrine
Posted In Fiduciary Duty
In Re MobilActive Media LLC, C.A. 5725-VCP (January 25, 2013)
This is an essential decision for anyone dealing with the corporate opportunity doctrine. Under that doctrine, a fiduciary who takes an opportunity that might have been instead given to his corporation (or LLC or LLP) is liable for any gain made by him as a result. One prime defense to such a claim is that the entity lacked the means to develop the opportunity itself and thus suffered no real harm when it lost that opportunity. This decision significantly undercuts that defense.
Tags: Fiduciary Duty
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