duty of loyalty

Definition of "duty of loyalty"
  1. 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
How to use "duty of loyalty" in a sentence
  1. The directors were accused of breaching their duty of loyalty by participating in fraudulent activities.
  2. When making financial decisions, the board must always adhere to their duty of loyalty to the shareholders.
  3. The company experienced a lawsuit due to suspicions that the management had violated their duty of loyalty.

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