The directors of ABC Corporation have voted to form a strategic alliance with Atlas Supplies Ltd.,a corporation owned by a block of ABC's shareholders.They plan to pay a premium over the market rate for the services of Atlas in recognition of their close relationship.Which statement best describes this situation?
A) The directors have entered into a self dealing contract.
B) The directors have breached their duty of competence.
C) The directors have breached their fiduciary duties by favouring on particular group of shareholders.
D) The directors have mis used a corporate opportunity.

Question

Quizplus · Accepted Answer

The directors have breached their fiduciary duties by favouring one particular group of shareholders.

The Directors of ABC Corporation Have Voted to Form a Strategic