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https://www.stimmel-law.com/en/articles/corporate-officers-duties-and-fiduciary-responsibilities#:~:text=Directors%20and%20officers%20meet%20their%20duty%20of%20care,decisions%20are%20in%20best%20interest%20of%20the%20corporation
https://www.stimmel-law.com/en/articles/corporate-officers-duties-and-fiduciary-responsibilities
The Three Basic Types of Fiduciary Duties. Most states, including California, maintain three basic fiduciary duties. 1) Duty of Care – directors and officers must use care and be diligent when making decisions on behalf of the corporation and its shareholders (who are the true owners of the corporation). Directors and officers meet their duty ...
https://www.law.cornell.edu/wex/duty_of_care
The duty of care is a fiduciary duty requiring directors and/or officers of a corporation to make decisions that pursue the corporation’s interests with reasonable diligence and prudence. This fiduciary duty is owed by directors and officers to the corporation, not the corporation’s stakeholders or broader society.
https://corporations.uslegal.com/officer-and-director-liability/responsibilities-of-officers-and-directors/duty-of-care/
The duty of care that an officer or director must exercise relates to the diligence that the person uses to make decisions. In order to fulfill this duty, an officer or director should follow several practices, including the following: Regularly attend board and committee meetings. Remain informed about the business and affairs of the corporation. Rely on information provided by …
https://legalbeagle.com/6295947-duties-responsibilities-corporate-officers.html
The duty of care requires that corporate officers act in ways that are in the best interests of the corporation. The officer must conduct business in a way that a similarly situated, ordinary prudent person would, and actions must be taken in good faith. This generally means that the officer cannot act negligently in performing her duties.
https://tremblylaw.com/fiduciary-duties-in-a-corporation-duty-of-care-and-how-to-live-up-to-it/
The duty of care is about bringing due diligence to your officer or director position. Namely, it requires attention and intelligent reflection. This includes the fact that directors and officers must inform themselves, prior to making a business decision, of all material information that is reasonably available to them.
https://wagenmakerlaw.com/blog/directors%e2%80%99-and-officers%e2%80%99-duty-care-%e2%80%93-pay-attention-and-take-responsibility
The duty of care is generally evaluated according to the "business judgment rule," under which directors and officers are presumed to make decisions on an informed basis and in good faith. Accordingly, to stay within the business judgment rule’s protection, directors and officers must take the same care that an ordinary and prudent person would exercise under …
https://www.oflaherty-law.com/learn-about-law/fiduciary-duties-of-corporate-officers-and-director
Duty of Care: Directors and corporate officers must use care and be diligent when making decisions on behalf of the company and shareholders (who truly own the company). The duty of care is met by making choices in good faith, with the care of a reasonable person in a similar situation, and with true belief that each choice is made with the best interests of the …
https://corpgov.law.harvard.edu/2008/05/08/court-imposes-caremark-fiduciary-duty-on-corporate-officer/
To date, the fiduciary duties of officers have been assumed to be identical to those of directors. With respect to directors, those duties include the duty of care and the duty of loyalty. There has also been much discussion regarding a duty of good faith, which may or may not be subsumed under the duty of loyalty.
https://www.sandiegobusinesslawyerblog.com/fiduciary-duties-of-officers-a/
The duty of care requires a corporate officer or director to carry out his duties as would any ordinarily prudent person in similar circumstances. For example, a corporate officer or director might violate his duty of care by contracting to buy a company without first conducting due diligence to find out if it is an economically sound decision.
https://corpgov.law.harvard.edu/2021/02/21/recent-trends-in-officer-liability/
More than a decade ago in the seminal case Gantler v. Stephens, the Delaware Supreme Court clarified that officers of Delaware corporations owe the same fiduciary duties of care and loyalty that directors owe to the corporation and its stockholders. While directors and officers owe the same fiduciary duties, they are not entitled to the same defenses.
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