BU231 Chapter Notes - Chapter 26: Fiduciary, Due Diligence, Financial Statement
Document Summary
The organizaion and management of the business that help achieve its internal objecives and external responsibiliies. Public companies have to meet some requirements and standards such as: majority of directors should be independent, ceo shouldn"t also be chair of the board. The board of directors: governing body of corp, manages its business and afairs. The oicers: highly ranked members (president, vp, controller, ceo) Role supervise and manage the business and afairs: issue shares, declare dividends, adopt bylaws for the corp, call meeings of shareholders, delegate responsibiliies. Must be appointed then elected, re-elected, or replaced on a regular basis. Responsible for the day to day hands on management of the business. Exercise the skill and diligence that a reasonably prudent person would in the same circumstances. Fiduciary duies: honest + good faith, loyalty, integrity, and trust. Duty of care, diligence and skill: owes not to be negligent, behavior is compared to the average director in same circumstances.
