MGT437H5 Chapter Notes - Chapter 1: Proxy Statement, Fiduciary, Internal Audit
Document Summary
Legal pe(cid:396)spe(cid:272)ti(cid:448)e: boa(cid:396)d is i(cid:374) (cid:272)ha(cid:396)ge of setti(cid:374)g a (cid:272)o(cid:396)p"s poli(cid:272)(cid:455) a(cid:374)d di(cid:396)e(cid:272)tio(cid:374) + appoi(cid:374)ti(cid:374)g offe(cid:396)s/age(cid:374)ts to act on behalf of the corp and upon matters that affect the corp. In good faith: act honestly and dealing fairly, lacking good faith would be acting or causing the (cid:272)o(cid:396)p to a(cid:272)t fo(cid:396) the di(cid:396)e(cid:272)to(cid:396)"s pe(cid:396)so(cid:374)al (cid:271)e(cid:374)efit o(cid:396) fo(cid:396) a(cid:374)(cid:455) pu(cid:396)pose othe(cid:396) tha(cid:374) the (cid:272)o(cid:396)p"s (cid:449)elfa(cid:396)e + economic interests. Reasonably believes: di(cid:396)e(cid:272)to(cid:396)"s ho(cid:374)est (cid:271)elief is su(cid:271)je(cid:272)ti(cid:448)e, ho(cid:449)e(cid:448)e(cid:396) the (cid:395)ualifi(cid:272)ation that is must be reasonable makes the standard of conduct also objective, not subjective. Best interests of the corporation: di(cid:396)e(cid:272)to(cid:396)"s p(cid:396)i(cid:373)a(cid:396)(cid:455) allegia(cid:374)(cid:272)e to (cid:272)o(cid:396)po(cid:396)ate e(cid:374)tit(cid:455) Care: express the need to pay attention, ask questions and act diligently to become and remain informed: reading material, preparing in advance for meetings. Person in a like position: avoiding implication of special qualifications and incorporating basic attributes of common sense.
