Corporate Opportunity Law and Legal Definition
Corporate opportunity refers to a legal principle that the members of a board of directors, executives, and other employees of a firm should not use an information acquired in their official capacity for personal gain. This principle is expressly applied to a director, officer, and controlling shareholders having a fiduciary relation with a corporation. According to this principle a person in a fiduciary duty must not take for themselves any business opportunity that could benefit the corporation. This doctrine is an application of the fiduciary duty of loyalty. The application of the doctrine comes into play when the opportunity was not disclosed to the corporation. In such case the corporation is entitled to all profits earned by the fiduciary from the transaction.