Breaches of Duty by Officers or Directors
Officers and directors of business organizations owe special obligations to the organization by virtue of their role in the company. For example, when an officer or director is presented with a business opportunity in the line of the corporation's business, the officer or director typically may not take the business opportunity for his or her own benefit. If the officer or director takes on the business instead of presenting it to the corporation, he or she may be liable for usurpation of corporate opportunity.
Officers and directors of non-profit organizations also generally have responsibilities to the organization, and may be held accountable to the organization for failing to comply with those responsibilities.
Depending on the circumstances of the particular case, any of several persons may seek recovery for misconduct by an officer or director. The company itself may be able to take action. Other officers and directors may intervene. A shareholder or group of shareholders may obtain legal counsel to investigate and enforce the shareholders' rights.
The Law Offices of John Day has experience assisting companies and their shareholders in recovering losses caused by officers and directors who have breached their duties. Likewise, The Law Offices of John Day has successfully defended business leaders who have been accused of taking opportunities from their companies. If you would like to speak to us about a potential matter involving the officer or director of a company, please contact us online or call us at 615-742-4880 or 866.812.8787.