Fiduciary Duty
The highest standard of legal obligation that directors and officers owe to the company and its shareholders, requiring them to act in the best interest of the organization rather than their own. Fiduciary duties encompass the duty of care (acting with prudence and diligence), the duty of loyalty (avoiding conflicts of interest), and for nonprofits, the duty of obedience (acting within the organization's mission). Breach of fiduciary duty can result in personal liability for directors.
Related Terms
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...
A fiduciary obligation, particularly important in nonprofit governance, requiring directors to ensure that the organizat...
A legal principle that protects directors and officers from personal liability for business decisions made in good faith...
Directors and Officers (D&O) insurance is a liability insurance policy that protects the personal assets of corporate di...
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