Officers of a company have more formal responsibility and authority than rank-and-file employees and are responsible for the management and day-to-day operations of the company.
A person owes another fiduciary duties when that person has control over a financial interest of the other. For example, corporate directors owe fiduciary duties to that corporation’s stockholders.
Duty of Loyalty
The duty of loyalty requires that the interests of the company and stockholders be placed before personal interests when making decisions and evaluating opportunities.
Duty of Care
The duty of care is one of the fiduciary duties and it is violated when an action is taken or not taken on the basis of inadequate information or without following a reasonable process.
Conflict of Interest
A conflict of interest is a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.