A director's fiduciary duty is owed to the corporation.This means that directors must act with a view to maximizing the value of shareholders' investment to the exclusion of the interests of other stakeholders in the corporation.

Question

Quizplus · Accepted Answer

A director's fiduciary duty is owed to the corporation as a whole, and they must act in the best interests of the corporation as a whole, which includes taking into account the interests of all stakeholders, not just shareholders. This duty is often described as a duty of loyalty and care to the corporation. Maximizing shareholder value is just one aspect of fulfilling this duty.

A Director's Fiduciary Duty Is Owed to the Corporation