Question Tag: Duties of Governance

Duties of Those Charged with Governance:

1. Fiduciary Duty:
   This duty required the directors to exhibit trustworthiness in acting in the best interest of those whom they represented. This duty required the directors to perform their mandated duties with high levels of integrity and competence.
2. Duty of Loyalty:
   The duty of loyalty of a corporate director makes him/her commit allegiance to the companies they served as directors and acknowledge to work in the best interests of those companies.
3. Duty of Fair Dealing:
   This duty required that all transactions conducted on behalf of the companies were handled in a transparent manner. The directors were expected to open up all their dealings to considerable scrutiny.
4. Duty of Care:
   The duty of care required the directors to act with the highest level of cautiousness in carrying out their responsibilities. They were to apply their common sense when working on behalf of those whom they represented to avoid being accused of committing blunders.
5. Duty of Supervision:
   This deals with the effectiveness with which the directors were to exercise their mandated duties. Further, the duty of supervision required the directors to have absolute control and knowledge about the activities of management to prevent all fraudulent practices on the part of management.