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| Grandiose secured an option to purchase a tract of land for $100,000. He then organized Dunbar Corporation and subscribed to 51% of the shares of stock of the corporation for $100,000, which was issued to him in exchange for his 3-month promissory note for $100,000. Controlling the board of directors through his share ownership, he had the corporation authorize the purchase of the land from him for $200,000. He made no disclosure to the board or to other shareholders that he was making a $100,000 profit. He promptly paid the corporation for his shares and redeemed his promissory note. A disgruntled shareholder subsequently learned the full details of the transaction and brought suit against Grandiose on the corporation’s behalf. Which of the following is a correct statement? A. Grandiose does not have a fiduciary duty to the corporation since he owns the majority of the corporation. B. The judgment of the board of directors was conclusive under the circumstances. C. Grandiose is entitled to retain the profit since he controlled the corporation as a result of his share ownership. D. Grandiose breached his fiduciary duty to the corporation and must account for the profit he made. |