Opinion ID: 1216412
Heading Depth: 1
Heading Rank: 4

Heading: duty of loyalty to the corporation

Text: The trial court found that Birl Lynch and R.C. Lynch breached their fiduciary duties to LCS and its shareholders, in that they profited from a series of transactions to the detriment of the corporation. On appeal, the Lynches contend that their actions were permissible under the Wyoming Business Corporation Act, §§ 17-1-101 through XX-X-XXXX, W.S. 1977, 1984 Cum.Supp. They urge this court to hold that a complaining stockholder must establish fraud or unreasonableness in order to recover damages from a director who enters into contracts with the corporation or approves his own compensation. Our prior cases, however, as well as those from other jurisdictions, require a challenged, interested director to prove that he acted in good faith and that the contested transactions were fair to the corporation. The Wyoming Business Corporation Act does not dictate a contrary result.