Corporate Business Opportunity
To find that a corporate officer or director breached his duty of loyalty by taking a business opportunity for himself, the plaintiff must show both that he was a fiduciary and that there was a corporate opportunity.
To find that there was a corporate opportunity, Delaware courts use a number of factors to determine whether it is a breach of his duty of loyalty to the company.
The factors in support of finding it to be a breach are:
- The corporation is financially able to exploit the opportunity
- The opportunity is within the corporation's line of business
- The corporation has an interest or expectancy in the opportunity
- By taking the opportunity for his own, the corporate fiduciary will thereby be placed in a position harmful to his duties to the corporation.