Corporate Opportunitie

Corporate opportunities are opportunities that arise as a result of a director’s position or opportunities that are relevant to the company’s business. The taking up of corporate opportunities by directors is governed at general law principally by the duty to avoid profits (the profits rule) but also by the duty to avoid conflicts (the conflicts rule), as well as by statutory duties and corporate governance principles. This chapter first outlines the general law position given that it subsists in a number of jurisdictions and that the interpretation of the statutory duties in the Companies Act 2006 (UK) is guided by this jurisprudence. The chapter then provides detailed examination of the relevant statutory duties and includes comments on relevant corporate governance principles.