Which of the following best describes the duty of loyalty owed by directors to a corporation under Canadian law
Which of the following best describes the duty of loyalty owed by directors to a corporation under Canadian law?
A. Act with reasonable care and skill in decision-making
B. Avoid conflicts of interest and prioritize corporate interests over personal gains
C. Follow all instructions from majority shareholders unconditionally
D. Delegate all operational decisions to senior management
Answer: B
Explanation: Duty of loyalty mandates directors avoid self-dealing and conflicts; A is duty of care, C violates fiduciary independence, D breaches director oversight duties.
