directors and officers who exploit their positions for personal gain are violating the?
a. business judgment rule
b.fairness 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?
2 answers
Isn't C just a part of D?
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?
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?
1 answer