Feb 22, 2021
Welcome back to the Law School Toolbox podcast! In today's episode, we're talking about the duty of loyalty owed by directors and officers of a corporation, and the main types of conduct they are prohibited to engage in.
In this episode we discuss:
- A review of the rule for duty of loyalty
- The four types of prohibited conduct when the officer's interest is placed before that of the corporation
- The situations in which a conflict of interest occurs
- Usurpation of a corporate opportunity
- Other topics that duty of loyalty is often tested with
- Analyzing three hypos from California bar exam essays involving duty of loyalty
Resources:
- “Listen and Learn” series (https://lawschooltoolbox.com/law-school-toolbox-podcast-substantive-law-topics/#listen-learn)
- California Bar Examination – Essay Questions and Selected Answers, July 2015 (https://www.calbar.ca.gov/Portals/0/documents/admissions/gbx/July2015_CBXSelectedAnswers_EssayQuestions1-6_R.pdf)
- California Bar Examination – Essay Questions and Selected Answers, February 2009 (https://juraxbar.com/wp-content/uploads/2016/04/February-2009-CBX.pdf)
- California Bar Examination – Essay Questions and Selected Answers, February 2002 (https://juraxbar.com/wp-content/uploads/2016/04/February-2002-CBX.pdf)
- Examples & Explanations: Corporations, by Alan R. Palmiter (https://www.amazon.com/Corporations-Examples-Explanations-Alan-Palmiter/dp/1454802472)
- Podcast Episode 280: Listen and Learn – Piercing the Corporate Veil (https://lawschooltoolbox.com/podcast-episode-280-listen-and-learn-piercing-the-corporate-veil/)
- Corporations 101 – A Quick Look at Upperclassmen Courses (https://lawschooltoolbox.com/corporations-101-a-quick-look-at-upperclassmen-courses/)
Download the Transcript
(https://lawschooltoolbox.com/episode-282-listen-and-learn-duty-of-loyalty-corporations/)
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Thanks for listening!
Alison & Lee