Opinion ID: 1776404
Heading Depth: 2
Heading Rank: 2

Heading: Fiduciary duty to DMI

Text: The opportunity presented by MTI was created by the Disctronics Group's relationship with Mitsubishi that had been established long before the Disctronics Group even began negotiations to buy DMI. Also, with the exception of the period governed by the Work-Out Agreement, DMI was a wholly owned subsidiary of the Disctronics Group, and no fiduciary duty of loyalty in the context of corporate opportunity is owed by a parent to a wholly owned subsidiary. See Anadarko Petroleum Corp., 545 A.2d at 1174. Also, under the terms of the Work-Out Agreement, at the end of the option period either the Disctronics Group would control DMI as a wholly owned subsidiary or they would have no interest in the company. Under either scenario, no fiduciary duty of loyalty was owed.