Peso Silver Mines v Cropper [1966]

Board
of directors of Peso given opportunity to purchase prospecting claims.
After
bona fide consideration of opportunity by board, it was rejected.
Later
a syndicate was formed and company set up to purchase the claims.
Included
claimant, director of Peso.
Control
of Peso later passed to another company who brought action claiming claimant accountable
to company.
Supreme
Court of Canada held claimant not
liable to account.

A director is free to make an investment in personal
capacity after his company has considered the same proposition and bona fide decided
against it.