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You have been invited to sit on the board of directors of different corporations, and now it is time to accept. You are aware of
You have been invited to sit on the board of directors of different corporations, and now it is time to accept. You are aware of the increasing number of cases finding directors personally liable. You do not want to be connected with a corporation involved with any wrongdoing. You are reviewing the reports on the five prospective corporations. Your reports reveal the following. In which of these is there no legal wrong?
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Canada Ltd: In this broadly held computer software corporation, a director, without the knowledge or consent of the board of directors, started a competing business that he ran from his home
Canada Ltd: The majority of the directors voted on a measure that was not in the best interest of the corporation, but that would financially weaken the position of a shareholder whom they personally disliked
Canada Ltd: A minority shareholder joined with a group that protested the corporation's involvement in a logging operation and tried to prevent the planned logging
Canada Ltd: A director who learned of a business opportunity while serving on the board of directors intercepted the opportunity for himself before the company could act on it
Canada Ltd: In a closely held corporation with four members, each owning of the outstanding shares, the two members who served as directors voted to issue more shares, which they sold directly to themselves to give them voting control of the corporation, despite a provision providing for preemptive rights in a shareholders agreement
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