What recourse do I have if our former president violated by laws by starting her own club?
Full Question:
Answer:
In a corporation, the president owes to the members of the company the duty of care, loyalty, and disclosure. Each officer is expected to always act in the best interest of the company as a whole and avoid any potential conflicts of interest with the company.
It will be a matter of subjective determination for the court to determine whether there was a breach of fiduciary duty, based on all the facts and circumstances involved. Some of the factors that may be considered include, among others, whether the fiduciary personally benefitted at the expense of the company, or failed to disclose information to the company's detriment. For example, were funds diverted to personal use? Was there knowledge of financial misdealings or risk factors that weren't disclosed by the fiduciary? In applying the statutory standards for the duty of care owed by a corporate officer, the court will need to determine whether there was gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law. The standards of care are measured against the subjective interpretation of how a "reasonable" person would act in similar circumstances.
In the absence of fraud, a contractual restrictive covenant, or the improper taking of a customer list, former employees may compete with their former employers and solicit former customers provided there was no demonstrable business activity before termination of employment. However, corporate officers owe a fiduciary duty of loyalty to their corporate employer not to (1) actively exploit their positions within the corporation for their own personal benefit, or (2) hinder the ability of a corporation to continue the business for which it was developed. The resignation of an officer will not sever liability for transactions completed after termination of the officer’s association with the corporation for transactions which (1) began during the existence of the relationship, or (2) were founded on information acquired during the relationship.
A copyright is a type of intellectual property that protects the authors of such things as books, magazine articles, plays, movies, songs, dances, and photographs. It is granted by the U.S. Patent and Trademark Office. Paintings are "visual art" specifically protected by Visual Artists Rights Act. The author of a work of visual art has the right to prevent any modification of that work which would be prejudicial to the artist’s honor or reputation.
A "work of visual art" has been defined as including a painting, drawing, print, or sculpture, existing in a single copy, in a limited edition of 200 copies or fewer that are signed and consecutively numbered by the author, or, in the case of a sculpture, in multiple cast, carved, or fabricated sculptures of 200 or fewer that are consecutively numbered by the author and bear the signature or other identifying mark of the author.
A work of visual art does not include any work made for hire. However, by statute, only certain specific categories of specially ordered or commissioned works created by an independent contractor are deemed "works made for hire." The following works are categorized as "works for hire" if specially ordered or commissioned, provided that the parties also expressly agree in a written instrument signed by them that the work will be considered a work made for hire: a contribution to a collective work; part of a motion picture or other audiovisual work; a translation; a supplementary work; a compilation; an instructional text; a test; answer material for a test; or an atlas.
Copyright protection begins from the time the work is created in fixed form. The copyright in the work of authorship immediately becomes the property of the author who created
the work. Only the author or those deriving their rights through the author can rightfully claim copyright.
In the case of works made for hire, the employer and not the employee is considered to be the author. Section 101 of the copyright law defines a “work made for hire” as:
"1. a work prepared by an employee within the scope of his or her employment; or
2. a work specially ordered or commissioned for use as:
• a contribution to a collective work
• a part of a motion picture or other audiovisual work
• a translation
• a supplementary work
• a compilation
• an instructional text
• a test
• answer material for a test
• an atlas
If the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire."
The authors of a joint work are co-owners of the copyright in the work, unless there is an agreement to the contrary. Copyright in each separate contribution to a periodical
or other collective work is distinct from copyright in the collective work as a whole and vests initially with the author of the contribution.