Fiduciary Duties of Board of Directors
Fiduciary duty means that, as shareholders’ guardians, directors must be trustworthy, acting in the best interest of shareholders, and investors in turn have confidence in the directors’ actions.
MANDATED BY LAW AND SPECIFIED IN COMPANIES CHARTERS AND BYLAWS
The corporate governance literature presents the following fiduciary duties of boards of directors:
Duty of due care
Duty of loyalty
Duty of Good Faith
Duty to Promote Success
Duty to Exercise Diligence, Independent Judgment, and Skill
Duty to Avoid Conflict of Interests
Fiduciary Duties and Business Judgment Rules.