First published on canadianminingjournal.com, September
2013.
Industry players on the look-out for the next big opportunity
are often tapped for their expertise and connections to serve in
management roles and as directors on boards of mining companies.
However, a recent decision of the Supreme Court of British Columbia
reminds directors and senior officers of the importance of steps
that should be considered in an effort to protect themselves when
pursuing certain opportunities for their personal benefit, as
opposed to that of the corporation they serve.
The decision in First Silver
In the case of First Majestic Silver Corp. v. Davila, the Court
awarded a hefty US$93.84 million judgment against a former director
and officer of First Silver Reserve Inc. after his holding
corporation indirectly acquired rights to a Mexican silver mine
known as Bolaños. The Court found that the acquisition
opportunity belonged to First Silver, the corporation to which he
owed a
