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.

business Operations-Management

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

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