corporate opportunity

corporate opportunity

n. a business opportunity which becomes known to a corporate official, particularly a director or other upper management, due to his/her position within the corporation. In essence, the opportunity or knowledge belongs to the corporation, and the officials owe a duty (a fiduciary duty) not to use that opportunity or knowledge for their own benefit. The corporation may have the right to damages (to be paid off) for such improper appropriation (use) of the opportunity on the theory that the official holds it in "constructive trust" for the corporation. The corporation may obtain an injunction (court order) to prevent someone's use of the knowledge or opportunity. In such cases angry stockholders may bring their own legal action for their benefit in what is called a derivative action. Such insider misappropriation (inappropriate use of information) may also be criminal theft, or be violative of federal or state securities laws. (See: conversion, conflict of interest, derivative action)

References in periodicals archive ?
NEW YORK -- The Boards of Trustees of PIMCO Corporate Income Fund (NYSE: PCN), PIMCO Corporate Opportunity Fund (NYSE: PTY), PIMCO Income Strategy Fund (NYSE: PFL), PIMCO Income Strategy Fund II (NYSE: PFN), PIMCO Income Opportunity Fund (NYSE: PKO), PIMCO Strategic Global Government Fund, Inc.
Within the claim Mr Cunningham and Mr Mapley, in their capacity of directors, are accused of numerous items including; unreasonable expending money of the company excessively in respect of a mining project in Ethiopia, failing to carry out any or adequate due diligence and failing to act on information to the effect that the project had serious problems, failing to protect the investment by ensuring that the money was properly and securely invested or ring-fenced and diverting to themselves a corporate opportunity by acquiring for themselves a share in the mining project at a small fraction of the price paid by APMGI for its equivalent share.
Examples include flagrant diversion, self-dealing, entrenchment, usurping corporate opportunity, excessive executive compensation and insider trading.
Each issue includes coverage of such topics as the effective use of fight letters in proxy contests, SEC losses in recent insider trading cases, disclosure obligations of issues of municipal securities, ethical duties for lawyers under Sarbanes-Oxley and the corporate opportunity doctrine as it relates to IPOs.
reminds business lawyers of the basics and the new twists, including considering the situation of the client, privacy and confidentiality, the lawyer as intermediary, confidentiality in corporate internal investigations, parent-subsidiary related party transactions, the corporate opportunity doctrine, multiple representation, screening and the personally disqualified attorney, the business attorney as litigator in corporate settings, lawyers who take equity interests in their clients, working as an inside counsel, and counsels working as directors.
NEW YORK -- The Boards of Trustees of PIMCO Corporate Income Fund (NYSE: PCN), PIMCO Corporate Opportunity Fund (NYSE: PTY), PIMCO Global StocksPLUS[R] & Income Fund (NYSE: PGP), PIMCO High Income Fund (NYSE: PHK), PIMCO Income Opportunity Fund (NYSE: PKO), PIMCO Strategic Global Government Fund, Inc.
15 /PRNewswire/ -- Ames Taping Tools (AMES), the leading designer, manufacturer, marketer, and distributor of Automatic Taping and Finishing (ATF) tools, has entered into a definitive agreement to sell its assets to a group of investors led by Aurora Capital Group, GSC Group and Saybrook Corporate Opportunity Fund, all of whom are existing investors in the company.
Saybrook Corporate Opportunity Fund provides capital to capital-constrained and distressed lower middle market companies in the U.
NEW YORK -- The Boards of Trustees of PIMCO Corporate Income Fund (NYSE: PCN), PIMCO Corporate Opportunity Fund (NYSE: PTY), PIMCO Income Strategy Fund (NYSE: PFL), PIMCO Income Opportunity Fund (NYSE: PKO), PIMCO Strategic Global Government Fund, Inc.
DSC had filed suit in Federal Court in Sherman, Texas, for theft of trade secrets and usurpation of corporate opportunity against its former employees and the company they founded to compete against DSC.
The jury specifically found that Eames and Keeler violated various provisions of their employment agreements, misappropriated a DSC corporate opportunity and DSC's trade secrets, and entered into a conspiracy to misappropriate DSC's corporate opportunities and trade secrets.
As previously disclosed in SafeCard's Form 10-Q filed with the SEC for the quarter ending April 30, 1993, in an action brought by the company in federal district court in Wyoming SafeCard alleges, among other things, that the CreditLine agreement represents a misappropriation of corporate opportunity and breach of fiduciary duty on Peter Halmos' part and seeks, among other things, monetary damages and equitable relief including protection of the company's CreditLine business free of interference from Mr.

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