The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

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.

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