Directors are under a ____ to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs.

Question

Quizplus · Accepted Answer

Directors have a duty of care, which requires them to act in the best interests of the corporation and to exercise reasonable care, skill, and diligence in their decision making. This duty includes the responsibility to conduct themselves as a reasonably prudent person in the conduct of personal business affairs. The other listed duties (reasonability, management, morality, and profit) do not fully capture the standard of conduct required of directors.

Directors Are Under a ____ to Conduct Themselves on Behalf