AFM231 Chapter Notes - Chapter 16: Corporate Action, Corporate Social Responsibility, Fiduciary

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

Identification theory: a theory specifying that a corporation is liable when the person committing the wrong is the corporation"s directing mind. Regulatory offence: an offence contrary to the public interest. Fiduciary duty: in corporate law, is summarized as directors and officers must not allow their personal interest to conflict with their duty to the corporation. Self-dealing contract: a contract in which a fiduciary has a conflict of interest. Corporate opportunity: a business opportunity in which the corporation has an interest. A fiduciary must not pursue or steal" corporate opportunities for himself/herself. Corporate social responsibility (csr): voluntary activities undertaken by a corporation to operate in a economic, social, and envi ronmentally sustainable manner. Duty of competence: requires directors and officers to exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances. Director"s liability in tort: will vary based on jurisdiction, but if the director"s conduct is extreme, he/she will be liable.