Corporate Opportunity Doctrine
One of the most important obligations that directors and officers owe to their company is to ensure that the company benefits from all financial opportunities available to it. When directors or officers fail in their obligations or usurp corporate opportunities for personal gain, they may have violated their fiduciary duty and the duty of loyalty, and can be subject to civil action by the company.
LA Law Firm represents parties on both sides of corporate opportunity litigation throughout Los Angeles and Southern California. Attorney Donald R. Ramenian brings to our business litigation practice more than 25 years of litigation and negotiation experience. His aggressive but adaptable business litigation strategies have enabled and empowered our firm’s clients to vindicate their financial and legal interests.
Understanding What Gives Rise To Corporate Director or Officer Liability
In evaluating whether a director or an officer has improperly usurped a corporate opportunity, courts will first determine whether the transaction in question is, in fact, a corporate opportunity. Some factors that figure into this analysis include:
- Whether the company would have had the financial means to seize the opportunity
- Whether the company had an expectation of interest in the opportunity
- Whether the opportunity in question was in the same line of business as that in which the company is engaged
- Whether the director or officer breached his fiduciary duty by improperly seizing the corporate opportunity
We undertake a thorough review of the facts and evidence surrounding allegations of usurpation of corporate opportunity to determine the most effective arguments to make in a client’s case, and then aggressively pursue our strategy in order to successfully resolve a claim in our client’s favor.
Discuss Your Business Litigation Case With A Lawyer | Contact Our Firm
To learn more about your rights with respect to the corporate opportunity doctrine, contact LA Law Firm online or call 310-575-5050.