corporate opportunity

   A business opportunity that a corporate official becomes aware of because of her or his position within the corporation. In such cases, the opportunity or knowledge properly belongs to the corporation itself; its officials owe a fiduciary duty not to use that opportunity or knowledge for their own benefit. Corporations may have the right to damages for the improper use of opportunities, and they may obtain an injunction (i.e., court order) preventing their use. Shareholders may bring their own suit against an offending official in a derivative action. Insider misappropriation may also be criminal theft or a violation of federal or state securities laws.

Business law dictionary. 2015.

Look at other dictionaries:

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