directors and officers who exploit their positions for personal gain are violating the?
a. business judgment rule
c.insider trading rule
d. corporate opportunity doctrine
I am fighting between C and D and not sure which one it is. But I am leaning a bit more toward C because it seems as if directors would profit from the insider trading the most. Please help?
business law - Writeacher, Monday, June 18, 2012 at 12:08pm
Isn't C just a part of D?
business law - just a student, Monday, June 18, 2012 at 2:50pm
To be honest with you, I have no idea. However, here is what my book says:
Insider trading rule: manager possesses inside information not available to outsiders. Manager must either reveal the information or refrain from trading on that information.
Corporate opportunity doctrine: manager learns of business opportunity that might reasonably interest the corporation. manager must offer the opportunity to the corporation before taking it for personal gain.
What do you think?