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:
“It is fair to assume that when women in the past have achieved even a second or third place in the ranks of genius they have shown far more native ability than men have needed to reach the same eminence. Not excused from the more general duties that constitute the cement of society, most women of talent have had but one hand free with which to work out their ideal conceptions.”
—Anna Garlin Spencer (1851–1931)