How a Company Insider Can Leave, Take Company Business and Not Breach Her Fiduciary Duty
In a previous blog post, The Fiduciary Duty of Preserving Corporate Opportunities, I wrote:
In general, an officer, director, partner, LLC member or shareholder in a closely held corporation owes a fiduciary duty not to usurp for his personal benefit, a business opportunity that could and should belong to the corporation.
While I have no qualms about that statement, a recent decision out of the Massachusetts Superior Court found that a company insider was not liable for breach of fiduciary duty even though she terminated her employment relationship with the company and started her own independent business that undertook the exact same work she had been doing for her prior company. … Keep reading