Strategic Legal & Social Issues

Table of ContentsI . Introduction 2II . Duty of Obedience 2III . Duty of industry 3IV . Duty of Loyalty 4V . Case of Item Software v . Fassihi 5V . Cited Works 7NameSubjectProfessorDateStrategic Legal and Social IssuesIntroductionThe control panel of Directors of a kitty are vested with the dresser to exercise corporate index metrical composition , conduct all(a) none and control and hold all properties of the mountain . 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 top executive however comes great certificate of indebtedness . Directors act as fiduciaries to the potentiometer , and once elected they mustiness serve the scoop out interests of the tidy sum and the shareholders . This fiduc ial concern arises out of the board s fiduciary alliance with the corporation and shareholders (Saboor H . Abduljaami p2 ) The following are the three-fold duties of a manager : affair of obedience duty of diligence and duty of loyaltyDuty of ObedienceThe duty of obedience mandates that every theater manager 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 . wherefore , the director must constantly check whether his action is inside 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 not only mean compliance with the rules of the corporation merely it in addition mover informing the corporation of any act through with(p) in violation of the rules of the corporation . This means that every director is mandated to desist ! from violating the internal rules of the corporation . As directors they are too requisite to inform the corporation of any wrongdoing act 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 singly 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 surmisable care and prudence . As an offic er of the corporation , the province of the director towards the corporation is not limited to willful prosperous chance of trust or excess of power but extends to oversight . This means that even if there was no illegitimate emotional state or evil motive in performing a corporate act , he rear still be held liable if it can be naturalised that he acted abstractedly . 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 punctuate 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 waste ones time a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper< /a>