The higher the position in an organization held by a director or managerial officer,the higher their fiduciary duty.

Question

Quizplus · Accepted Answer

Fiduciary duty is the highest duty of care, loyalty, and good faith that one party owes to another in a particular relationship. The fiduciary duty of a director or managerial officer is based on the trust that shareholders and other stakeholders place in them to act in the best interest of the company. The higher the position in an organization held by a director or managerial officer, the greater is the trust and responsibility placed on them, and hence, the higher their fiduciary duty.

The Higher the Position in an Organization Held by a Director