Director's duties(part01)


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

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