Asked by Brianna Ellis on Jun 16, 2024
Verified
The board of directors' fiduciary duty to a company means they have assumed a position of trust and confidence that entails certain responsibilities.
Trust and Confidence
The belief in the reliability, truth, and ability of someone or something, leading to a sense of security and assurance.
- Understand the fiduciary duties of the board of directors towards the company and its stakeholders.
Verified Answer
KS
Karanveer SinghJun 20, 2024
Final Answer :
True
Explanation :
The statement is true. Fiduciary duty refers to the legal obligation of the board of directors to act in the best interest of the company and its shareholders, and to exercise care, loyalty, and good faith in making decisions and carrying out their duties. This duty arises from the trust and confidence placed in them by the owners of the company.
Learning Objectives
- Understand the fiduciary duties of the board of directors towards the company and its stakeholders.
Related questions
Both Directors and Officers of Corporations Are Fiduciaries for the ...
Directors Share a ______, Which Means All Their Decisions Should ...
A(n)_____ Is Elected by the Stockholders of a Corporation to ...
Who Is Responsible for Setting the Long-Range Objectives of a ...
According to the Statutory Close Corporation Supplement to the MBCA,who ...