n Tydskrif vir die Suid-Afrikaanse Reg - Appropriation of corporate opportunities by directors and employees : regspraak
|Article Title||Appropriation of corporate opportunities by directors and employees : regspraak|
|© Publisher:||Juta Law Publishing|
|Journal||Tydskrif vir die Suid-Afrikaanse Reg|
|Publication Date||Jan 2007|
|Pages||169 - 178|
ISI Social Science
As fiduciaries, directors have to account to their companies for "secret profits" - advantages obtained in the course and execution of their office other than those to which the directors are entitled by virtue of holding that office. They also have an obligation not to usurp business opportunities that fall in the company's line of business and that they should be acquiring on its behalf, often described as "corporate opportunities", for their own personal gain. The circumstances in which these two obligations arise often overlap, but there are also clear differences between them. The distinction is important when it comes to issues like ratification (Havenga "Corporate opportunities: a South African update" Parts I and II 1996 SA Merc LJ 40 and 233).
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