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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
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Commenting on the Placing, Martin Rosser, CEO of Alexander, said 'We are delighted to have secured this investment from new and existing shareholders to give the Company the flexibility for a potential beneficial corporate opportunity and to provide additional working capital.
Michael Cockburn, co-founder of Desana, said: "The idea for Desana came from our own experience of working from home -- like many flexible workers, my co-founder and I realised while working from our kitchen tables that we missed the camaraderie of an office space and in so doing we spotted the wider corporate opportunity."
their companies; waive the corporate opportunity doctrine; and even
But, never ones to miss out on a corporate opportunity, Johanna and Per embark on a new money-making scheme, with Anders once again unwittingly at the helm.
But, never ones to miss out on a corporate opportunity, Johanna and Per embark on a new moneymaking scheme, with Anders once again unwittingly at the helm.
Traditionally, such claims arise in two principal situations: (1) self-dealing between the fiduciary and the corporation to the detriment of the latter (3) and (2) misappropriation by the fiduciary of a corporate opportunity. (4) Unlike traditional self-dealing, a fiduciary with an opportunity-cost conflict does not enter into a transaction with the corporation--the fiduciary simply shuts down the business and withdraws.
CEO Ideology as an element of the corporate opportunity structure for social activists.
Fired by all this corporate opportunity I was wondering if I could crash the gig and offer my talents, limited though they are.
Seibel is seeking the return of his original investment plus PS6million for Ramsay's "egregious misconduct, fraud, self-dealing and theft of corporate opportunity."
Profit Margin Drag -10.0% Profit Margin Change (1 x 2) -0.50% In this light, the corporate opportunity cost arises from the company being locked into a long-term real estate lease with a landlord who has no mechanism to permit asset closures, offer substitute assets, permit lease assignments, or consider the sale of the property.
The crucial difficulty in applying the corporate opportunity doctrine lies in defining when exactly a business opportunity belongs to the corporation.
Sokolnicki resigned last week to pursue a corporate opportunity.

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