Dimitri is a director and shareholder of Equitable Corporation and of Four Square Products, Inc. A resolution comes before the Equitable board to compete with Four Square. What is Dimitri's responsibility?
What will be an ideal response?
A director cannot support a business that competes directly with a corporation on the board of which the director sits. The director's fiduciary duty requires him to fully disclose the conflict of interest. Most likely, the director in these circumstances will have to resign from one of the boards.
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