What are the rights and obligations of directors and officers of a corporation?
Officers and directors of a corporation in Texas have certain rights and obligations. Directors are responsible for managing and overseeing the business affairs of the corporation. They must exercise reasonable care and skill in making decisions and must act in good faith and in the best interest of the company. Directors are authorized to bind the company and have authority to set policy and make major decisions. Officers of a corporation are typically responsible for the day-to-day operations of the business. They are authorized to enter into contracts on behalf of the company and to execute other legal documents. They must also make sure that corporation complies with all relevant legal and regulatory requirements. They may also be held personally liable for any misconduct or negligence related to their duties. In both cases, the directors and officers of a corporation must act in accordance with the powers given to them by the corporation’s charter and bylaws. It is also expected that they will exercise their duties in a manner that is fair and beneficial to the company and its shareholders, customers, and other stakeholders. Finally, they must act with honesty and good faith and must not abuse any position of trust or authority or engage in any self-dealing.
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