Definition
Directors’ Duties are the legal and governance duties applying to people who direct an organisation when exercising their powers and responsibilities.
Human Explanation
People directing an organisation must understand the standards, limits and responsibilities attached to their role and Decisions.
Why it Matters
Awareness of these duties supports lawful governance and reduces personal, organisational and legal Risk.
Conceptual Boundary
The precise duties, persons covered and consequences vary by legal form, role and jurisdiction. This concept does not summarise the law of any particular jurisdiction.
Practical Perspective
Before making a material Decision, a director should understand the purpose of the power, available evidence, conflicts, organisational interests and any need for qualified legal advice.