Does a director have a fiduciary obligation to urge the company to seize the opportunity of a potential future profit?
Alberta, Canada
The following excerpt is from Durish v. White Resource Management Ltd., 1998 ABQB 801 (CanLII):
125. WRM refers to Western Finance v. Tasker, supra, in which the court held that the defendant director, who was in a fiduciary relationship with the corporation and who gained knowledge of some potential profit as a result of his position as director, had a duty to urge the company to seize that opportunity rather than to take it personally. If he takes it for himself he becomes a constructive trustee of the profits on behalf of the corporation.
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