Corporations - DoC versus DoL
Posted: Wed Nov 30, 2011 9:18 am
Can someone please tell me if my understanding of the Duty of Care versus the Duty of Loyalty is correct?
Duty of Loyalty questions arise only when there is a question that raises a potential conflict of interest. Duty of Care questions arise when a shareholder questions the business judgment of a director/officer that does not involve a conflict of interest.
Duty of Loyalty questions arise only when there is a question that raises a potential conflict of interest. Duty of Care questions arise when a shareholder questions the business judgment of a director/officer that does not involve a conflict of interest.