...fiduciaries often do not understand the standards of conduct that they must uphold, and this can create the risk of personal liability.
Palo Alto, CA (PRWEB) October 28, 2011
Silicon Valley Corporate Governance Attorney Douglas Y. Park, Principal of DYP Advisors, announces a series of educational articles on fiduciary duties in corporate settings. These duties obligate the fiduciary to act in the best interests of those to whom they owe a responsibility.
- The fiduciary duties of the board of directors to the corporation and its shareholders. The board of directors must act in the best interests of the corporation and its shareholders. In so doing, the directors must abide by their duty of care and their duty of loyalty.
- The fiduciary duties of officers to the corporation. Senior executives, such as the CEO and SFO, must act in the best interests of the corporation.
- The duties of the board of directors during the sale of a company, such as a merger or acquisition.
Future installments of the series will probe into special problems in these relationships, including the policy considerations that should guide these relationships. For example:
- The responsibilities of the board of directors to shareholders during a proxy challenge.
- The relationship between an investment fund and its investors.
- Conflicts between two duties that one fiduciary has.
Mr. Park explains the significance of these obligations. “Fiduciary duties are a fundamental part of corporate governance that shape economic relationships and outcomes. However, fiduciaries often do not understand the standards of conduct that they must uphold, and this can create the risk of substantial legal exposure.”
Mr. Park has advised directors and executives on these matters, and has served as a consultant to law firms on the breach of fiduciary duty.
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DYP Advisors provides business informed legal services that help executives, boards of directors, and investors address issues in corporate governance, corporate law, and strategy. The firm applies its deep experience in business and law to these central challenges. Our cost effective, high value added services give you an edge over the competition. You can find more information about the firm at http://www.dypadvisors.com.