duty of loyalty
- An obligation enforced on the directors of a corporation, requiring them to avoid exploiting their positions for personal gain instead of prioritizing the interests of the shareholders
- The directors were accused of breaching their duty of loyalty by participating in fraudulent activities.
- When making financial decisions, the board must always adhere to their duty of loyalty to the shareholders.
- The company experienced a lawsuit due to suspicions that the management had violated their duty of loyalty.
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