Final answer:
Jude needs to disclose his interest and likely abstain from the decision-making process to avoid a conflict of interest. The board must ensure fair and sound corporate governance and conduct due diligence to confirm the property's suitability and market value.
Step-by-step explanation:
Jude is on the board of directors of Mammoth Food Processing Corporation and is interested in selling a distribution center to the company. In order for Jude to sell the distribution center to Mammoth, there must be careful consideration of potential conflicts of interest. Jude will need to disclose their personal interest in the transaction to the other board members of Mammoth and most likely abstain from voting on the transaction to avoid a conflict of interest. This is a measure to ensure that the board's decision is in the best interest of the corporation and that it adheres to the principle of corporate governance.
Depending on the corporation's bylaws and state law, a vote excluding Jude might be required, and the transaction should be fair and reasonable to Mammoth. Additionally, it's important that the board conducts a due diligence review of the property to ensure that it meets the company's needs at a fair market price, and they should explore other options to affirm that Jude's property is the best choice.