District of Columbia Code Division V. Local Business Affairs § 29-306.80. Business opportunities.
Current as of January 01, 2020 | Updated by FindLaw Staff
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(a) A director's taking advantage, directly or indirectly, of a business opportunity shall not be the subject of equitable relief, or give rise to an award of damages or other sanctions against the director, in a proceeding by or in the right of the corporation on the ground that the opportunity should have first been offered to the corporation, if, before becoming legally obligated respecting the opportunity, the director brings it, to the attention of the corporation and:
(1) Action by qualified directors disclaiming the corporation's interest in the opportunity is taken in compliance with the procedures set forth in § 29-306.72, as if the decision being made concerned a director's conflicting interest transaction; or
(2) Shareholders' action disclaiming the corporation's interest in the opportunity is taken in compliance with the procedures set forth in § 29-306. 73, as if the decision being made concerned a director's conflicting interest transaction; provided, that rather than making “required disclosure” as defined in § 29-306.70, in each case the director shall have made prior disclosure to those acting on behalf of the corporation of all material facts concerning the business opportunity that are then known to the director.
(b) In any proceeding seeking equitable relief or other remedies based upon an alleged improper taking advantage of a business opportunity by a director, the fact that the director did not employ the procedure described in subsection (a) of this section before taking advantage of the opportunity shall not create an inference that the opportunity should have been first presented to the corporation or alter the burden of proof otherwise applicable to establish that the director breached a duty to the corporation in the circumstances.
Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 29-306.80. Business opportunities. - last updated January 01, 2020 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-29-306-80/
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