duty of candor
- An obligation that requires the directors of a corporation to share all important facts that they are aware of regarding a transaction when they are asking for the endorsement of the shareholders
- The duty of candor was strictly upheld by the corporation's directors as they disclosed all facts of the upcoming merger to the shareholders.
- In order to abide by the duty of candor, all the board members offered a thorough overview of the proposed sale's potential impact.
- Despite the potential drawbacks, the executives fulfilled their duty of candor by explaining every aspect of the impending investment to their shareholders.