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.
Correct Answer:

Verified
Correct Answer:
Verified
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