Conflicts of interest. Oxy Corp. is a negotiating with Wick Construction Co. for renovation of Oxy’s corporate headquarters. Wick, the owner of Wick Construction Co. is also one of the five members of Oxy’s board of directors. The contract terms are standard for this type of contract, Wick has previously informed two other directors of his interest in the construction company. Oxy’s board approves the contract by three-to-two votes, with Wick voting the majority. Discuss whether this contract is binding on the corporation. (see Directors and Officers)
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