Standards Governing Actions of Corporate Officers - Explained

The video tutorial discusses the fiduciary duties of care and loyalty that officers must observe, similar to directors, but with a focus on day-to-day operations. It explains that officers are generally not liable for their conduct if they maintain these duties. The business judgment rule protects officers by raising the standard of care required to breach their duty, requiring extreme recklessness or intentional harm. Officers must ensure decisions are informed, in the corporation's best interest, and legal to be protected. Avoiding self-dealing and taking corporate advantages is crucial for meeting the duty of loyalty.

What are the fiduciary duties that officers or managers must observe?

How does the business judgement rule protect officers in their decision-making?

What is required for an officer to breach their duty of care under the business judgement rule?

What conditions must be met for the business judgement rule to generally protect an officer?

What actions should officers avoid to meet the standards required for the duty of loyalty?