The 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 duty of loyalty is one of the core fiduciary duties of directors and officers. It requires them to act in the best interests of the corporation and its shareholders, even if it conflicts with their personal interests. This includes avoiding conflicts of interest, disclosing any potential conflicts, and prioritizing the corporation's interests over their own.

The Duty of Loyalty Requires Directors and Officers to Subordinate