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Duties of good faith and loyalty to the corporation

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Reference no: EM131675693

Question: Peter Smejkal was a corporate officer and director of J.A. Morrissey, Inc. (JAM), a construction company. While employed at JAM, Smejkal had his own excavation business and secretly performed excavation work on JAM projects on his own behalf. On one occasion he also used JAM employees for construction activities that were unrelated to JAM's projects. Additionally, Smejkal abused his position at the company and poisoned the relationship with three JAM clients while still an officer at JAM and then succeeded in obtaining those clients' projects for his own company after his termination from JAM. Did Smejkal owe duties of good faith and loyalty to JAM? If so, do you think Smejkal breached his duties of good faith and loyalty to the corporation? Why or why not?

Reference no: EM131675693

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