An officer or director will be found to have discharged her duty of care if she acts in good faith, as would an ordinarily prudent person under like circumstances, and under the reasonable belief that she is acting in the best interests of the corporation.

Question

Quizplus · Accepted Answer

This statement is true and reflects the duty of care standard for officers and directors of a corporation. They must act in good faith and with the same level of prudence that an ordinarily prudent person would exercise under the same circumstances, while also acting in the best interests of the corporation.

An Officer or Director Will Be Found to Have Discharged