The fiduciary duty of loyalty requires directors and officers to subordinate their personal interests to those of the corporation and its shareholders.

Question

Quizplus · Accepted Answer

The fiduciary duty of loyalty is one of the main duties of directors and officers towards the corporation and its shareholders. This duty requires them to act in good faith and in the best interests of the company, putting any personal interests aside. This means that they need to prioritize the corporation's agenda, rather than their own.

The Fiduciary Duty of Loyalty Requires Directors and Officers to Subordinate