Which of the Following Is an Example of Breach of Fiduciary

question 9

Multiple Choice

Which of the following is an example of breach of fiduciary duty?

• A)The directors of a corporation refuse to give a pay raise to the employees although they have not received one for five years.
• B)A director makes a profit of $120,000 from a contract between the corporation and a firm in which he has an interest after he has made full disclosure of his interest to the board of directors and abstained from the vote on the contract.
• C)An officer of a corporation learns of a business opportunity intended for the company and intercepts it for his own benefit
• D)The directors refuse to declare dividend contrary to a request by its preferred shareholders.
• E)A shareholder owning 2% of the outstanding shares starts a business in direct competition with a corporation in which he holds shares.

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