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Duty of Care

The duty of care is one of the fiduciary duties of corporate directors under the laws of US states such as Delaware, and it is violated when an action is taken or not taken on the basis of inadequate information or without following a reasonable process.

For example, if a board of directors of a corporation were to vote on a merger without performing any due diligence on the transaction or the other party, their process for making that decision probably violates their duty of care.

Fiduciary Duty of Due Care
Last reviewed: May 10, 2021