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LSDefine

Simple English definitions for legal terms

corporate opportunity

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A quick definition of corporate opportunity:

Corporate opportunity means that people who work for a company, like bosses and directors, have to be careful not to take away good business ideas from the company for their own benefit. They have to do what's best for the company, not just for themselves. Sometimes it's hard to know if something is a corporate opportunity or not, but if it's something the company could do and it's related to what the company does, then it's probably a corporate opportunity. People who work for the company have to be honest about any conflicts of interest they have and not try to hide anything. If they do something wrong, they can get in trouble.

A more thorough explanation:

Corporate opportunity refers to the responsibility of senior executives and directors of corporations to not take business opportunities away from the corporation for their own benefit. This means that executives should not use their position within the corporation to benefit themselves at the expense of the corporation.

For example, if a director of a company learns of a potential business opportunity that would be a good fit for the company, they cannot take advantage of that opportunity for their own personal gain. Instead, they must present the opportunity to the company and allow the company to decide whether or not to pursue it.

Courts use various factors to determine whether or not a director has taken advantage of a corporate opportunity. These factors include:

  • Whether the corporation is financially able to pursue the opportunity
  • Whether the opportunity is within the corporation's line of business
  • Whether the corporation has an interest or expectancy in the opportunity
  • Whether the director's actions are in conflict with their duties to the corporation

It is important for fiduciaries to be transparent about any conflicts of interest they may have and to recuse themselves from decision-making where necessary. Courts are more likely to be critical of fiduciaries who attempt to conceal their actions in order to take advantage of corporate opportunities.

corporate officers | corporate raider

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NosyBeagle
19:28
Do tell
i had to drop out of a grad program but i explained it in my gpa addendum bc it was the same underlying event causing both
i was also named in a civil lawsuit that got dismissed but only one school asked about it
sorry probably not helpful
ParallelAgreeableOrangutan
19:58
idk what the situations are, but you absolutely should write about them if the school asks about them—the only time you should be asking *whether* to write one is when you're not sure whether your situation qualifies as what they're asking about
ParallelAgreeableOrangutan
19:59
better question is usually *how* to write about them
ParallelAgreeableOrangutan
20:00
I had to write about write
ParallelAgreeableOrangutan
20:01
... write-ups at work (petty, and they were removed from my file after a year, but even so the app asked so I wrote)
NosyBeagle
20:05
Ah it cancelled out my msg cus I switched tabs. But I’ll just tell you guys cus I get mixed answers: a) accused of cheating on a calc exam freshman year but was cleared of wrongdoing, b) sent to the hospital senior year because I go too drunk
ParallelAgreeableOrangutan
20:12
Seems like you'd need to write about A because it went through a formal process, but it shouldn't hurt you if you explain it straightforwardly and explain you were cleared (just don't be weirdly salty about it like you're holding a grudge)
ParallelAgreeableOrangutan
20:12
Re B, did this involve school in any way? Is there an app that has a C&F question that you think this applies to?
ParallelAgreeableOrangutan
20:13
Maybe you're not deep enough into the process to know this—each school has its own unique set of C&F questions, so you should disclose exactly what they ask about, no more, no less
NosyBeagle
20:14
OH
NosyBeagle
20:14
Ok why did I think it was just gonna be one type of q for all. My bad folks. Ignore my info dump
ParallelAgreeableOrangutan
20:16
No worries! Frankly I think it's wild that applications have weird hidden quirks that you don't know about until you're actually logged into LSAC working through the app. There's some info you can find about the oddball/unique questions you'll find on specific apps, so you might want to look for that for schools you're going to apply to
ParallelAgreeableOrangutan
20:17
Like on various consultants' blogs, reddit, etc
NosyBeagle
20:17
🫡 thank you good sir or ma’am or bam
ParallelAgreeableOrangutan
20:17
Ooh can I be a bam
NosyBeagle
20:39
You may
20:45
ima write my personal statement about being fired and how that made me want to do law but it would be funny if I also had to write an addendum about it
20:45
turns out defense companies don’t like it when you question the war machine 🙏
20:46
“What are your opinions on Edward Snowden” - my boss
ParallelAgreeableOrangutan
21:02
I wrote optional essays about a situation that affected my undergrad performance. For any school that required an "education gap addendum" I was basically like "pls see my optional essay"
ParallelAgreeableOrangutan
21:02
¯⁠\⁠_⁠(⁠ツ⁠)⁠_⁠/⁠¯
NosyBeagle
21:12
did they accept that?
NosyBeagle
21:12
that reminds me of filling out job apps and they want you to type out your resume in a text box. like huh??? open the pdf, idiots
ParallelAgreeableOrangutan
21:18
I mean I was nicer about it—I'd put a couple of sentences explaining it super lo-res, and then I said something like "I speak to this situation in detail in my optional essay."
ParallelAgreeableOrangutan
21:20
They don't send your application back to you and tell you to redo an addendum if they don't like it, so the only way to know whether they "accepted" it, as it were, is admissions results
Bettercaulsaul
22:28
Helpful video I found https://youtu.be/2ZVrX6DTSKU?si=KsZeWbF4_fJuqKl5
23:17
who up lsdin they law
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