Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zaidee is a director and shareholder of closely - held Perilous Corporation, a developer and manufacturer of computer games. Her brother, Marcus, is a computer
Zaidee is a director and shareholder of closelyheld Perilous Corporation, a developer and manufacturer of computer games. Her brother, Marcus, is a computer programmer who also recently started a computer game company, Titus Corporation. Zaidee is a minority shareholder in Perilous, and she also owns of Titus. Her brother has asked her to present a new game line to the Perilous board of directorsshareholders and request that they consider purchasing the games as they are developed. Titus' game line is outstanding, but because they are a startup they could use the additional support from an established company. Zaidee knows that Marcus is unreliable and probably will not follow through on the games, yet she also believes if he does pull it off the games would be some of the best on the market. At the next Perilous board meeting, Zaidee presents the opportunity to the board. After a lengthy discussion, the board unanimously including Zaidee's vote agrees to purchase the Titus games. Zaidee does not tell the board that Marcus is her brother, or that she holds shares in Titus. Has Zaidee breached her fiduciary duties to the other directorsshareholders of Perilous Corporation?
a No because the board unanimously accepted the offer.
b No because of the Business Judgment Rule.
c Yes, because she did not disclose her connection to Titus.
d Yes, because Marcus can be unreliable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started