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Simple English definitions for legal terms

duty of loyalty

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A quick definition of duty of loyalty:

The duty of loyalty is a responsibility that company directors have to put the interests of the company and its shareholders before their own personal interests. This means they cannot use company assets or information for their own benefit. They must also keep any information they learn as a director confidential and report any conflicts of interest to the company. If they have a personal conflict, they must tell the other directors so they can make a decision without them. Directors must also present any opportunities that could benefit the company to the board before trying to benefit from them.

A more thorough explanation:

The duty of loyalty is a responsibility that company directors have to put the interests of the company and its shareholders before their own personal interests. This means that they cannot use company assets, opportunities, or information for their own benefit. If they do, they are violating their duty of loyalty.

For example, if a director takes advantage of information that is valuable to the company and uses it to make a profit for themselves, they are violating their duty of loyalty. Another example is if a director takes a corporate opportunity for themselves instead of offering it to the company first.

In addition to these examples, the duty of loyalty also requires directors to keep any information they receive as directors confidential and to report any conflicts of interest to the company. If a conflict of interest does exist, the director should disclose all relevant information.

To avoid violating their duty of loyalty, directors should disclose any personal conflicts they may have to the board of directors so that a disinterested vote can be taken without them. They should also present any opportunities that are relevant to the corporation to the board before trying to benefit from them.

Overall, the duty of loyalty is an important responsibility that directors have to ensure that they act in the best interests of the company and its shareholders.

duty of good faith | duty to mitigate

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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