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This is an essay question.
P-Corp was formed on May 1, 2016 in the state of Illinois. The company is authorized in its articles of incorporation to conduct any lawful business activity. P-Corp is anticipating the passage of a bill in the Illinois General Assembly legalizing recreational marijuana. P-Corp has retained a very influential former state legislator as its lobbyist in Springfield, and anticipates having an inside track on a seller's license expected to be sold by the State to businesses that can produce and sell recreational marijuana. J.B. Pillar, a member of the board of directors of P-Corp, was selected by the full board to begin to look for land especially suited for growing a marijuana crop around the area of Peoria, Illinois. Pillar is familiar with the Peoria area, and he locates a tract of land just a few miles from the Illinois river that would serve as an ideal location for the corporation's growing activities. In the course of his search, Pillar became aware of some major commercial development planned nearby, making the tract of land an ideal investment for any reason. Pillar reported back to the full board regarding the suitability of the tract for growing marijuana, but did not mention anything about the planned commercial development nearby. The board instructed Pillar to arrange to purchase the land on behalf of the corporation. However, before Pillar could consummate a sale, the Illinois General Assembly adjourned without passing the recreational marijuana bill. The corporation's lobbyist informed the board that the bill was unlikely to be reconsidered given a shift in public opinion polls. Upon hearing this, the board ordered Pillar to cease negotiations regarding the land purchase. Several months later, Pillar purchased the land for himself. Discuss whether or not Pillar has any potential liability to P-Corp.
I am thinking that Pillar broke the duty of loyalty. Am I correct?
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