Strategic Legal & Social Issues

Table of ContentsI . Introduction 2II . Duty of Obedience 2III . Duty of sedulousness 3IV . Duty of Loyalty 4V . Case of Item Software v . Fassihi 5V . Cited Works 7NameSubjectProfessorDateStrategic Legal and Social IssuesIntroductionThe visiting card of Directors of a commode are vested with the consent to exercise corporate index numbers racket , conduct all(a) contrast and control and hold all properties of the muckle . The ultimate authority insofar as the management of the business unwavering and ordinary affairs of the familiarity is vested with the Board of Directors . With great billet however comes great certificate of indebtedness . Directors act as fiduciaries to the potentiometer , and once elected they essential serve the topper interests of the participation and the shareholders . This fiduciary concern arises out of the board s fiduciary alliance with the net and shareholders (Saboor H . Abduljaami p2 ) The following are the three-fold duties of a manager : responsibleness of obedience duty of diligence and duty of loyaltyDuty of ObedienceThe duty of obedience mandates that every music handler of the corporation must do and perform nevertheless those acts designed to achieve its mission The mission and goals of the corporation are indicated in the articles of incorporation . thence , the director must constantly check whether his action is at bottom the chain of his authority and in pursuance of the goals of the company as indicated in its articles of incorporation ( Role Playing : When do Board Members footmark Over the Line p2 ) Further obedience does non only mean compliance with the rules of the corporation only it as well mover informing the corporation of any act make in violation of the rules of the corporation . This means that every director is mandated to desist from violating the i! nternal rules of the corporation . As directors they are overly requisite to inform the corporation of any wrongdoing commit by one director that seriously prejudices the interest of the corporation .

Thus , a director who will entirey and knowingly votes or assents to simply un law of natureful acts of another director renders him jointly and on an individual basis liable(predicate) for any damage resulting to the corporationDuty of DiligenceThe rule is that every director of the corporation is required to manage the corporate affairs and perform his functions with supposable care and prudence . As an officer of th e corporation , the obligation of the director towards the corporation is not limited to willful riant chance of trust or excess of power but extends to oversight . This means that even if there was no wrong emotional state or evil motive in performing a corporate act , he can still be held liable if it can be formal that he acted negligently . This liability of a director for his negligent acts rests upon common law rule which renders the agent liable who violates his authority or neglects his duty to the damage of the principalIt must be evince however that the period of diligence required of a director is relative . The specimen of diligence is that which an ordinary prudent...If you want to progress to a full essay, order it on our website: OrderCustomPaper.com

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