Pedigree Millwork Company negotiates with Quality Builders, Inc., for the construction of a new facility to manufacture pattern moldings, stair parts, cabinet parts, panels, and other specialty wood products. The terms of the contract are standard for this kind of deal. Rikki—

one of the five directors on Pedigree’s board—owns Quality Builders. Pedigree’s board plans to vote on the contract at its next meeting.

What is Rikki’s duty in this situation? Directors are ______________ of their corporation. The ______________ duty of the directors includes the duty of loyalty. This duty requires directors to ______________ their personal interests to the corporation’s welfare. When a corporation engages in a transaction, such as entering into a contract, in which a director has a personal interest, the director must make a ______________ of any conflict of interest and ______________ on the proposed deal. That is what Rikki should do here.