On Usurping Corporation's Opportunity

With the rapid development of economy, we are becoming more and moreconcerned with any commercial opportunities. It being so important, a secret littlecompany can turn overnight into a famous one with a good grasp of the opportunities,while a once "big guy" may fall ramshackle missing the chance. Just because of itsimportance, a research on regulations of commercial opportunities is highly necessaryas there has not been any governing clause present in China Company Law.Regulation on business opportunities has been an important regulation in theAnglo-American legal system. The so-called business opportunity is the informationobtained by the directors and managers in the process of running the business, whichare highly beneficial to the company, as it must be disclosed to the company underfiduciary duties. The directors and managers have a so-called "Forbidden onUsurping Company's Opportunity" duty, which means that they are not supposed towithhold any opportunity information for their own profits, as is required by fiduciaryduties. Meanwhile, directors and managers are not supposed to tamper with anyopportunity information. As is not regulated in China Company Law, this articlemainly talks about this issue.Based on various materials and careful analysis, the article went through athorough examination of the concept, subject, history and standards of OpportunitySystem. A legislative proposal of the application of this system in China is made,which will help the relative legislation of regulations in China Company Law.