duty of candor

Definition of "duty of candor"
  1. 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
How to use "duty of candor" in a sentence
  1. The duty of candor was strictly upheld by the corporation's directors as they disclosed all facts of the upcoming merger to the shareholders.
  2. In order to abide by the duty of candor, all the board members offered a thorough overview of the proposed sale's potential impact.
  3. Despite the potential drawbacks, the executives fulfilled their duty of candor by explaining every aspect of the impending investment to their shareholders.

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