Corporate charters require the directors of the company to protect the financial interests of the company's stockholders.

Question

Quizplus · Accepted Answer

This is a fundamental principle of corporate law that is enshrined in a company's charter. Directors have a fiduciary duty to act in the best interests of the company's shareholders and to protect their financial interests. This duty is designed to prevent directors from using their positions to enrich themselves at the expense of the company and its shareholders.

Corporate Charters Require the Directors of the Company to Protect