What is DUTY OF CARE?

A legal requirement in certain systems where the BOARD OF DIRECTORS and executives must make informed decisions in discharging their FIDUCIARY responsibilities. An informed decision is generally based on gathering all relevant facts and material, giving such information due consideration, and then making a decision. A breach of duty of care can lead to legal action by shareholders. See also DUTY OF LOYALTY.

More On This Topic




Link to This Definition

Did you find this definition of DUTY OF CARE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary