Legal Responsibilities of Board Members

Board members have a responsibility to exercise their powers and carry out their duties with care and diligence in their position. What that means is that they are expected to do what they would expect anyone else in their position to do.

Duty to act in the best interest of the organization as a whole.

If you are in charge of employees, you have a standard to live up to. It is up to you to make sure that you and your company live up to your legal responsibilities.

Duty not to abuse a corporate opportunity.
When your corporation trusts you with sensitive information, you have a responsibility to treat that information in confidence. Letting that information fall into the wrong hands can end up causing legal problems for your corporation.  It is up to the board member to use discretion with company information. Failure to do so could jeopardize the board members job and company information.

Duty to avoid/disclose any relevant potential conflict of interest.
Be careful when in a corporate position that you don't let information become compromised. Letting information fall into the wrong hands can be very detrimental and has the potential for legal problems.

Duty to avoid negligence and fraud.
Board members must remember not to engage in any activities that may amount to fraud, negligence, default, breach of trust, or breach of security. Being a board member bears a huge responsibility to the company and it is extremely important to remember that. 

When you are given a responsibility within a corporation, it comes with many responsibilities. One of the most important duties is to follow legal practices.  Another is to exercise your powers and make sure you do your duties the way your corporation would be proud.

    
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