TAILIEUCHUNG - Project Leadership_11

Tham khảo tài liệu 'project leadership_11', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 288 FINANCIAL STRATEGIES Duty of Care. The directors must carry out their duties in good faith with diligence care and skill in the best interests of the corporation. Each director must actively gather information to make an informed decision regarding company affairs and in formulating company strategies. In doing so the board member is entitled to rely primarily on the data provided by officers and professional advisors provided that the board member has no knowledge of any irregularity or inaccuracy in the information. I have seen instances where board members have been held personally responsible for misinformed or dishonest decisions made in bad faith such as the failure to properly direct the corporation or where the board knowingly authorized a wrongful act. Duty of Loyalty. The duty of loyalty requires each director to exercise his or her powers in the interest of the corporation and not in his or her own interest or in the interest of another person including a family member or organization. The duty of loyalty has a number of specific applications such as the duty to avoid any conflicts of interest in your dealings with the corporation and the duty not to personally usurp what is more appropriately an opportunity or business transaction to be offered to the corporation. For example if an officer or director of the company was in a meeting on the company s behalf and a great opportunity to obtain the licensing or distribution rights for an exciting new technology were to be offered at the meeting it would be a breach of this duty to try to obtain these rights individually and not first offer them to the corporation. Duty of Fairness. The last duty a director has to the corporation is that of fairness. For example duties of fairness questions may come up if a director of the company is also the owner of the building in which the corporate headquarters are leased and the same director is seeking a significant rent increase for the new renewal term. It would

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