What are the duties and rights of Directorship?
Being a Director of a company or a not-for-profit association carries certain legal obligations and rights. These are summarized as: • The Duty of Care. The duty of care describes the level of competence that is expected of a board member. The duty of care calls upon a director to act in a reasonable and informed manner when participating in the board’s decisions and its oversight of the corporation’s management. The duty of care requires that first, a director be informed; and second, a director discharge his duties in good faith “with the care that an ordinarily prudent person in a like position would reasonably believe appropriate under similar circumstances”. • The Duty of Loyalty. The duty of loyalty is a standard of faithfulness; it requires directors to exercise their powers in good faith and in the best interests of the corporation, rather than in their own interests or the interests of another entity or person. By assuming office, the director acknowledges that with regard to
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