What are the fiduciary obligations of the board of directors?

Question

Quizplus · Accepted Answer

The fiduciary obligations of the board of directors are to safeguard the interests of the company's stakeholders, including shareholders, employees, customers, suppliers, and the community. This includes making decisions that effectively manage risks and promote the long-term success of the company. Maximizing profits and allowing high-risk accounting practices may not necessarily be in the best interests of all stakeholders and may conflict with the fiduciary obligation of safeguarding their interests. Giving excessive executive compensation may also be seen as conflicting with the fiduciary obligation to manage risk and promote long-term success.

What Are the Fiduciary Obligations of the Board of Directors