Duty of Obedience
A fiduciary obligation, particularly important in nonprofit governance, requiring directors to ensure that the organization operates in accordance with its stated mission, articles of incorporation, bylaws, and applicable laws. The duty of obedience prevents directors from authorizing actions that are outside the organization's purpose (ultra vires acts) or that violate legal requirements. While all directors have this duty, it carries special significance for nonprofit board members who are stewards of a charitable mission.
Related Terms
The highest standard of legal obligation that directors and officers owe to the company and its shareholders, requiring ...
A fundamental fiduciary obligation requiring directors to act with the level of care, diligence, and skill that a reason...
A core fiduciary duty requiring directors to place the interests of the corporation and its shareholders above their own...
The governing body of a nonprofit organization, responsible for setting the mission and strategic direction, ensuring fi...
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