Study On Director’s Obedient Duty

With power in hand, directors sometimes can decide the fate of the company. It is not rare to see that directors manipulate power as given by the company to his own good, therefor it is very important to impose the obedient duty on the directors to make sure that they will exercise their power in a good way.The built-in obedient duty legitimatizes the power of the directors, and bring out the value of the board of directors.Directors shall exercise their power diligently for a proper purpose within limits set by the ethics, law and articles of association without detrimental to the company. The power shall take further walk in the face of the duty, however without legal means the duty is only a empty talk. Director shall bear responsibility in case of violation of the obedient duty.The determination of the responsibility shall be taken by board of shareholders or by the Judges. There are some differences with regards to the determination standard and exceptions.