Name the 3 common law duties of corporate directors AND provide a brief explanation of what...

Question

Question

Name the 3 common law duties of corporate directors AND provide a brief explanation of what each means.

Answer 1

Answer #1

Answer: The three common law duties of the corporate directors are as follows

Exercise of discretion: It is the duty of the corporate director to exercise their discretion which means that they have to use their experience and independent and informed judgment while discharging their duty of managing the company and supervising the activities of the executive. The corporate directors should not get influenced
Exercising power for proper purposes: The corporate directors because of the virtue of their position are invested with certain powers that they should not use for any wrong purposes. They need to ensure that they use their power only for the proper purposes which are in the interest of all the relevant stakeholders of the organization.
Avoiding conflict of interest: The directors while discharging their duties may face situation of conflict of interest where their own interests clash with that the interest of the firm. They should avoid this situation and it is because of this reason that it is said that the corporate directors should be independent entities rather than from the executive team.

Answer 2

Similar Homework Help Questions

3 reasons why access to primary care is important. Provide a brief explanation to each reason...

3 reasons why access to primary care is important. Provide a brief explanation to each reason you have provided
Processing: Provide a brief explanation each species carcass goes through post mortem. Beef - Sheep -...

Processing: Provide a brief explanation each species carcass goes through post mortem. Beef - Sheep - Swine - Name two things that are inspected postmortem.
Processing: Provide a brief explanation each species carcass goes through post mortem. Beef - Sheep -...

Processing: Provide a brief explanation each species carcass goes through post mortem. Beef - Sheep - Swine - Name two things that are inspected postmortem.

Do some research and provide a brief explanation (2-3 sentences) for why ethanol isconsidered to be...

Do some research and provide a brief explanation (2-3 sentences) for why ethanol isconsidered to be a “greener” reagent than methanol
(a) Provide a brief explanation for why strontium chloride as a higher melting point (874 ºC)...

(a) Provide a brief explanation for why strontium chloride as a higher melting point (874 ºC) than lithium chloride (605 ºC). Provide a brief explanation for why strontium chloride as a lower melting point than boron nitride (2,973 ºC). (3) (b) H2O (MW = 18.0 g/mol) boils at 100 ºC, HF (MW = 20.0 g/mol) boils at 19.5 ºC, while H2Se (MW = 81.0 g/mol) boils at –41.3 ºC. Provide an explanation for these observations based on the type and...
What is the role of a Board of Directors in corporate management, and from where do...

What is the role of a Board of Directors in corporate management, and from where do directors obtain their power to make these decisions? a. To make sure that bond holders receive no money and that stock holders receive all of the money in a corporation. The Board of directors is inherently corrupt and any bank that lends to a company that has a board of directors will lose money. b. The Board of Directors (BOD) is made up of...

What is the role of a Board of Directors in corporate management, and from where do...

What is the role of a Board of Directors in corporate management, and from where do directors obtain their power to make these decisions? a. To make sure that bond holders receive no money and that stock holders receive all of the money in a corporation. The Board of directors is inherently corrupt and any bank that lends to a company that has a board of directors will lose money b. The Board of Directors (BOD) is made up of...
Name 3 new tax law changes as it relates to Individual Tax Payers? Name 3 new...

Name 3 new tax law changes as it relates to Individual Tax Payers? Name 3 new tax law changes as it relates to Corporate Tax Payers? What is the new “Pass thru” tax deduction? Which entities does it apply to? Do you think that by reducing the corporate tax rate it will help or hurt the United States?
Name 3 plant species that produce drupes Please provide the common and scientific name for each.

Name 3 plant species that produce drupes Please provide the common and scientific name for each.

Please choose the correct answer and provide brief explanation. Consider a categorical predictor with 3 levels....

Please choose the correct answer and provide brief explanation. Consider a categorical predictor with 3 levels. Levels 1, 2, and 3 have been coded as indicator variables I1, I2, and I3 and included in a regression model with a continuous predictor variable X1. Y = b0 + b1*I1*X1 + b2*I2*X1 + b3*I3*X1 The use of the indicator variables defines: (a.) different slopes for each group (b.) an intercept adjustment