282: Listen and Learn -- Duty of Loyalty (Corporations)

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