Shanghai Fluid Equipment Technology Co., Ltd. v. Shi Moumou: Loss to the Company
A director or senior manager may not use inside position and company resources to divert a business opportunity that belongs to the company for personal gain. Once the opportunity is shown to be within the company’s real business scope and efforts, private diversion to an affiliated entity is a breach of loyalty and results in compensation liability.
Holding
A director or senior manager may not use inside position and company resources to divert a business opportunity that belongs to the company for personal gain. Once the opportunity is shown to be within the company’s real business scope and efforts, private diversion to an affiliated entity is a breach of loyalty and results in compensation liability.
Issues
loyalty duties of directors and senior managerscorporate business opportunityconflict of interest and private diversion