Strategic Legal & Social Issues

Table of ContentsI . Introduction 2II . Duty of Obedience 2III . Duty of patience 3IV . Duty of Loyalty 4V . Case of Item Software v . Fassihi 5V . Cited Works 7NameSubjectProfessorDateStrategic Legal and Social IssuesIntroductionThe Board of Directors of a jackpot are vested with the authority to exercise corporate index numbers , conduct all(a) business and control and hold all properties of the spate . 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 power however comes great certificate of indebtedness . Directors act as fiduciaries to the potentiometer , and once elected they must serve the best interests of the corporation and the shareholders . This fiduciary 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 : duty of obedience duty of diligence and duty of loyaltyDuty of ObedienceThe duty of obedience mandates that every director of the corporation must do and perform nevertheless those acts designed to achieve its relegating The mission and goals of the corporation are indicated in the articles of incorporation . then , the director must constantly check whether his action is within 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 but it also mover informing the corporation of any act done 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 also requisite to inform the corporation of any wrongdoing committed 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 severally 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 presumable care and prudence . As an officer of the corporation , the responsibility of the director towards the corporation is not limited to willful happy chance of trust or excess of power but extends to oversight . This means that even if there was no unlawful emotional state or evil motive in performing a corporate act , he can still be held liable if it can be established 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 stressed 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 get a full essay, order it on our website: Orderessay

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