Directors and officers of a corporation owe a fiduciary duty to act honestly.This duty,called the duty of ________,requires directors and officers to subordinate their personal interests to those of the corporation and its shareholders.

Question

Quizplus · Accepted Answer

The fiduciary duty that requires directors and officers to act honestly and subjugate their personal interests to the corporation and its shareholders is the duty of loyalty. While the duty of care obligates directors and officers to make informed and reasonable business decisions, the duty of obedience requires compliance with the corporation's governing documents, and the duty of good faith calls for the exercise of honesty and fairness in all corporate dealings.

Directors and Officers of a Corporation Owe a Fiduciary Duty