The directors and officers of a corporation must act within the authority conferred upon them by the state's corporation code,the articles of incorporation,the corporate bylaws,and the resolutions adopted by the board of directors.This duty is called the duty of ________.

Question

Quizplus · Accepted Answer

The duty described in the question is the duty of obedience, which requires directors and officers to act within the confines of the corporation's legal documents and the resolutions adopted by the board of directors. The duty of reasonable care requires directors and officers to act reasonably when making decisions, while the duty of loyalty requires them to act in the best interests of the corporation and its shareholders. The duty of good faith requires them to act honestly and with integrity, and a fiduciary duty encompasses all of these duties and more.

The Directors and Officers of a Corporation Must Act Within