BL Unit VI Assessment 1 of 2

Revised Model Business Corporations Act Name: Institution: For the director and officers in the corporate world to be held accountable to the stakeholders, the Revised Model Business Corporations Act stipulates their duties. One of the duties if that of care, that regulates the activities of the directors, such that they cannot engage in practices that will cause harm to the company and the stakeholders in general (National Association of Veteran’s Research And Education Foundations, 2013). If for example, a director or an officer takes an action that leads to the company losing some amount of money to the shareholders, he/she may be held accountable for that liability. This can be approached from the view of negligence from the director. As such all the directors and officers are required to make decisions in the best interest of the company and the shareholders, to the best of the knowledge and ability. The directors and the officers are also held by the duty of loyalty. They should always act in good faith of the corporation’s interests. As such, all the dealing that the director or the officer does for the company should be fair and should not result in any form profit or personal gain at the expense of the company (McDaniel, 2000). ...