Section 3.04. Corporate opportunities.

  Directors and officers of a savings bank and other persons having the power or authority to direct the management of the savings bank stand in a fiduciary relationship to the institution and its accountholders or shareholders or both. Out of this relationship arises, among other things, the duty of protecting the interests of the savings bank. It is a breach of this duty for such a person to take advantage of a business opportunity for his or her own or another person's personal profit or benefit when the opportunity is within the corporate powers of the savings bank or a service corporation and when the opportunity is of present or potential practical advantage to the savings bank. If a person so appropriates such an opportunity, the savings bank or service corporation may claim the benefit of the transaction or business and the person exposes himself or herself to liability. In determining whether an opportunity is of present or potential practical advantage to a savings bank, the division shall consider, among other things, the financial, managerial, and technical resources of the savings bank and its service corporation, and the reasonable ability of the savings bank directly or through a service corporation to acquire those resources.

History: Cr. Register, February, 1994, No. 458 , eff. 3-1-94.

Note

This section interprets or implements ss. 214.335 and 214.345 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 This section parallels 12 CFR 563.201 , an OTS regulation applying to savings and loan associations. Microsoft Windows NT 6.1.7601 Service Pack 1