Officers and directors of companies are bound by the duties of _________ and _________ in overseeing the operations of their companies.

Question

Quizplus · Accepted Answer

Officers and directors of companies owe a duty of loyalty and duty of care to the company and its shareholders. The duty of loyalty requires the officers and directors to act in good faith, in the best interests of the company, and to avoid self-dealing or conflicts of interest. The duty of care requires the officers and directors to exercise reasonable care, skill and diligence in overseeing the operations of the company.

Officers and Directors of Companies Are Bound by the Duties