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Question: 1. What duties did Brock, as a director, owe to Firm Body? Name and define these duties.

2. Does the fact that Brock owned shares in Sunglow create a conflict of interest? Answer yes or no and explain.

3. Suppose that Firm Body brought a lawsuit against Brock claiming that he had breached the duty of loyalty by not disclosing his interest in Sunglow to the other directors. Can Brock use the business judgment rule as a defense? Answer yes or no and explain.

4. Now suppose that Firm Body did NOT file a lawsuit against Brock, but Penada believes that Brock is liable for the financial losses that Firm Body suffered as a result of its tanning operations. What type of lawsuit might Penada be able to file based on the harm to Firm Body?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92697942

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