{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-691.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-691.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-691.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-691.1.html"}],"law_id":72680,"edition_id":1,"section_id":72680,"structure_id":14362,"section_number":"13.1-691.1","catch_line":"Business opportunities","history":"2005, c. 765.","full_text":"A\n\nA director’s taking advantage, directly or indirectly, of a business opportunity may not be the subject of equitable relief, or give rise to an award of damages or other sanctions against the director, in a proceeding by or in the right of the corporation on the ground that such opportunity should have first been offered to the corporation, if before becoming legally obligated respecting the opportunity the director brings it to the attention of the corporation and:1\n\nDirectors’ action disclaiming the corporation’s interest in the opportunity is taken in compliance with the procedures set forth in subdivision A 1 of § 13.1-691, as if the decision being made concerned a director’s conflict of interests transaction; or2\n\nShareholders’ action disclaiming the corporation’s interest in the opportunity is taken in compliance with the procedures set forth in subdivision A 2 of § 13.1-691, as if the decision being made concerned a director’s conflict of interests transaction.B\n\nIn any proceeding seeking equitable relief or other remedies, based upon an alleged improper taking advantage of a business opportunity by a director, the fact that the director did not employ one of the procedures described in subsection A before taking advantage of the opportunity shall not create an inference that the opportunity should have been first presented to the corporation or alter the burden of proof otherwise applicable to establish that the director breached a duty to the corporation in the circumstances.","order_by":null,"text":{"0":{"id":261605,"text":"A director’s taking advantage, directly or indirectly, of a business opportunity may not be the subject of equitable relief, or give rise to an award of damages or other sanctions against the director, in a proceeding by or in the right of the corporation on the ground that such opportunity should have first been offered to the corporation, if before becoming legally obligated respecting the opportunity the director brings it to the attention of the corporation and:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":261606,"text":"Directors’ action disclaiming the corporation’s interest in the opportunity is taken in compliance with the procedures set forth in subdivision A 1 of § 13.1-691, as if the decision being made concerned a director’s conflict of interests transaction; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":261607,"text":"Shareholders’ action disclaiming the corporation’s interest in the opportunity is taken in compliance with the procedures set forth in subdivision A 2 of § 13.1-691, as if the decision being made concerned a director’s conflict of interests transaction.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":261608,"text":"In any proceeding seeking equitable relief or other remedies, based upon an alleged improper taking advantage of a business opportunity by a director, the fact that the director did not employ one of the procedures described in subsection A before taking advantage of the opportunity shall not create an inference that the opportunity should have been first presented to the corporation or alter the burden 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This law was first created in 2005. The record of its establishment is cataloged in chapter 765<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":56699,"section_number":"13.1-691","catch_line":"Director conflict of interests","order_by":null,"url":"\/13.1-691\/"}],"permalink":{"id":151255,"object_type":"law","relational_id":72680,"identifier":"13.1-691.1","token":"13.1\/9\/9\/13.1-691.1","url":"\/13.1-691.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-691.1\/","token":"13.1\/9\/9\/13.1-691.1","dublin_core":{"Title":"Business opportunities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-691.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A director’s taking advantage, directly or indirectly, of a business opportunity may not be the subject of equitable<\/span> relief, or give rise to an award of damages<\/span> or other sanctions<\/span> against the director, in a proceeding<\/span> by or in the right of the corporation<\/span> on the ground that such opportunity should have first been offered to the corporation<\/span>, if before becoming legally obligated respecting the opportunity the director brings it to the attention of the corporation<\/span> and: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Directors’ action disclaiming the corporation<\/span>’s interest<\/span> in the opportunity is taken in compliance with the procedures set forth in subdivision A 1 of § 13.1-691<\/a>, as if the decision being made concerned a director’s conflict of interests<\/span> transaction; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Shareholders<\/span>’ action disclaiming the corporation<\/span>’s interest<\/span> in the opportunity is taken in compliance with the procedures set forth in subdivision A 2 of § 13.1-691<\/a>, as if the decision being made concerned a director’s conflict of interests<\/span> transaction. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In any proceeding<\/span> seeking equitable<\/span> relief or other remedies, based upon an alleged improper taking advantage of a business opportunity by a director, the fact<\/span> that the director did not employ one of the procedures described in subsection A before taking advantage of the opportunity shall not create an inference that the opportunity should have been first presented to the corporation<\/span> or alter the burden of proof<\/span> otherwise applicable to establish that the director breached a duty to the corporation<\/span> in the circumstances. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBUSINESS OPPORTUNITIES (\u00a7 13.1-691.1)\n\nA. A director’s taking advantage, directly or indirectly, of a business\nopportunity may not be the subject of equitable relief, or give rise to an award\nof damages or other sanctions against the director, in a proceeding by or in the\nright of the corporation on the ground that such opportunity should have first\nbeen offered to the corporation, if before becoming legally obligated respecting\nthe opportunity the director brings it to the attention of the corporation and:\n\n 1. Directors’ action disclaiming the corporation’s interest in the\n opportunity is taken in compliance with the procedures set forth in\n subdivision A 1 of § 13.1-691, as if the decision being made concerned a\n director’s conflict of interests transaction; or\n\n 2. Shareholders’ action disclaiming the corporation’s interest in\n the opportunity is taken in compliance with the procedures set forth in\n subdivision A 2 of § 13.1-691, as if the decision being made concerned a\n director’s conflict of interests transaction.\n\nB. In any proceeding seeking equitable relief or other remedies, based upon an\nalleged improper taking advantage of a business opportunity by a director, the\nfact that the director did not employ one of the procedures described in\nsubsection A before taking advantage of the opportunity shall not create an\ninference that the opportunity should have been first presented to the\ncorporation or alter the burden of proof otherwise applicable to establish that\nthe director breached a duty to the corporation in the circumstances.\n\nHISTORY: 2005, c. 765.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}