Montana Clauses Relating to Venture Opportunities, competition
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FAQ
The Company, on behalf of itself and its Subsidiaries, renounces any interest in a Corporate Opportunity and any expectancy that a Corporate Opportunity will be offered to the Company; provided that the Company does not renounce any interest or expectancy it may have in any Corporate Opportunity that is offered to an ...
A business opportunity is a corporate opportunity if the corporation is financially able to undertake the opportunity, the opportunity is within the corporation's line of business, and the corporation has an interest or expectancy in the opportunity.
A legal principle that prohibits an officer or director of a corporation from diverting a business opportunity presented to, or otherwise rightfully belonging to, the corporation to himself or any of his affiliates. This doctrine derives from an officer's or director's duty of loyalty to the corporation.
The doctrine of corporate opportunity dictates the broad principle that executives should not abuse their positions within the corporation as it is their job to act in the best interests of the corporation.
Under any test, a corporate opportunity exists when a proposed activity is reasonably incident to the corporation's present or prospective business and is one in which the corporation has the capacity to engage.
Usurping of a Corporate Opportunity In other words, if an officer or director of a corporation is presented with a business opportunity that is in the same or a related business as the one in which the corporation is involved, they cannot simply pursue that opportunity for their own personal benefit.