Duty of Care

The duty of care that an officer or director must exercise relates to the diligence that the person uses to make decisions. In order to fulfill this duty, an officer or director should follow several practices, including the following:

  • Regularly attend board and committee meetings.
  • Remain informed about the business and affairs of the corporation.
  • Rely on information provided by others, such as reports, financial statements, and opinions.
  • Make inquiries about problems that may arise with respect to the corporation.

Inside Duty of Care