Directors' duties are a series of statutory, common law and equitable obligations owed primarily by members of the board of directors to the corporation that employs them. It is a central part of corporate law and corporate governance. Directors' duties are analogous to duties owed by trustees to beneficiaries, and by agents to principals.
Among different jurisdictions, a number of similarities between the framework for directors' duties exist.
- directors owe duties to the corporation, and not to individual shareholders, employees or creditors outside exceptional circumstances
- directors' core duty is to remain loyal to the company, and avoid conflicts of interest
- directors are expected to display a high standard of care, skill or diligence
- directors are expected to act in good faith to promote the success of the corporation
Read more about Directors' Duties: United Kingdom
Famous quotes containing the word duties:
“The deadly monotony of Christian country life where there are no beggars to feed, no drunkards to credit, which are among the moral duties of Christians in cities, leads as naturally to the outvent of what Methodists call “revivals” as did the backslidings of the people in those days.”
—Corra May Harris (1869–1935)