Podcast
Questions and Answers
What is the primary obligation of directors under fiduciary duties?
What is the primary obligation of directors under fiduciary duties?
- To act in the best interests of the company's shareholders (correct)
- To prioritize their personal interests and gains
- To avoid conflicts of interest with the company's creditors
- To exercise reasonable care, skill, and diligence
What is the expectation of directors when carrying out their duties and decision-making process?
What is the expectation of directors when carrying out their duties and decision-making process?
- To act solely in the interests of the company's management
- To act only in the interests of the company's employees
- To act with a certain degree of care, skill, and diligence (correct)
- To act with a certain degree of recklessness and negligence
What is a consequence of directors failing to disclose conflicts of interest?
What is a consequence of directors failing to disclose conflicts of interest?
- They are required to resign from their position
- They are exempt from any further fiduciary duties
- They are prohibited from participating in related decisions (correct)
- They are liable to the company for any damages caused
What is an expectation of directors in terms of their dealings with the company?
What is an expectation of directors in terms of their dealings with the company?
What is a restriction on directors under fiduciary duties?
What is a restriction on directors under fiduciary duties?
What is the minimum number of directors required for a Private Limited Company?
What is the minimum number of directors required for a Private Limited Company?
What is the primary reason for a director to disclose their personal interest in a matter?
What is the primary reason for a director to disclose their personal interest in a matter?
What is the consequence if a director does not disclose their personal interest in a matter?
What is the consequence if a director does not disclose their personal interest in a matter?
What is the primary responsibility of directors when handling financial statements and reporting?
What is the primary responsibility of directors when handling financial statements and reporting?
What is the maximum number of directors allowed for a Joint Venture company?
What is the maximum number of directors allowed for a Joint Venture company?
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