What does it mean when the board of directors of a company has "fiduciary responsibility"?
A) They must act in the best interest of stockholders
B) They generally have equity and a share of the profits of the company
C) They can invest in a later funding round pro-rata
D) They want to make a 10x return or better on their investment

Question

Quizplus · Accepted Answer

Fiduciary responsibility means that the board of directors must act in the best interest of the stockholders, prioritizing their interests above their own.

What Does It Mean When the Board of Directors of a Company