The duty of care pertains to conflicts of interest and requires that directors serve the interests of the corporation and its shareholders.

Question

Quizplus · Accepted Answer

The duty of care refers to the requirement that directors make decisions with the diligence, care, and skill that a reasonably prudent person would use under similar circumstances. The duty to avoid conflicts of interest and serve the interests of the corporation and its shareholders is more accurately described as the duty of loyalty.

The Duty of Care Pertains to Conflicts of Interest and Requires