Corporate Opportunity Legal Meaning and Definition

Here is a simplified definition of the legal term Corporate Opportunity.

Corporate Opportunity (noun): A business prospect or investment possibility that a corporation's director or officer becomes aware of, due to their position in the company. These individuals have a legal duty known as the "corporate opportunity doctrine," which obligates them to act in the best interests of the corporation. They cannot use this knowledge for their personal gain or disclose it to outsiders, as it could potentially harm the company. If these rules are violated, the company has the right to take legal action against such individuals.