The following three broad duties stem from the fiduciary status of corporate directors:
A)Obedience, loyalty, and confidentiality
B)Obedience, loyalty, and due care
C)Loyalty, due care, and confidentiality
D)Obedience, loyalty, and good faith
E)Loyalty, confidentiality, and good faith

Question

Quizplus · Accepted Answer

The three broad duties that stem from the fiduciary status of corporate directors are obedience, loyalty, and due care. Obedience refers to the directors' responsibility to comply with the company's articles of incorporation, bylaws, and applicable laws and regulations. Loyalty requires directors to act in the best interests of the corporation and its shareholders, and to avoid conflicts of interest. Due care refers to the diligence and skill that directors must exercise in making business decisions on behalf of the corporation. While confidentiality and good faith are important principles for directors to uphold, they are not among the central duties that derive from the fiduciary nature of their position.

The Following Three Broad Duties Stem from the Fiduciary Status