Duty of loyalty,
Definition of Duty of loyalty:
The duty of loyalty requires a director to be completely loyal to the company at all times. It also imposes the responsibility to avoid possible conflicts of interest, thereby precluding a director from self-dealing or taking advantage of a corporate opportunity for personal gain.
A corporate law term used to describe a corporate fiduciarys fidelity to the companys interests. A breach of a fiduciarys duty of loyalty occurs when the entrusted fiduciaries, such as the CFO of the business for example, divert corporate assets or information and opportunities for their own personal benefit.
Duty of loyalty is a director's responsibility to act at all times in the best interests of their company. The duty of loyalty is one of the two primary fiduciary duties required to be discharged by a company's directors, the other being the duty of care.
Meaning of Duty of loyalty & Duty of loyalty Definition