In Hong Kong, directors owe fiduciary duties primarily to the company, but these duties also protect the interests of shareholders. The key fiduciary duties of directors include:
1. Duty to Act in Good Faith
Executives must act truly and within the best interface of the company, considering the long-term benefits for the company, its workers, and its shareholders.
2. Duty to Use Powers for a Proper Purpose
Chiefs must work out their powers for genuine purposes and not for individual pick up or to favor certain shareholders over others.
3. Duty to Avoid Conflicts of Interest
Executives ought to maintain a strategic distance from circumstances where their individual interface strife with those of the company. They must unveil any potential clashes and abstain from taking part in related choices.
4. Duty to Exercise Care, Skill, and Diligence
Chiefs are required to act with the care, ability, and tirelessness that a sensibly judicious individual would work out in a comparative position, considering their particular information and skill.
5. Relationship to Shareholders
Whereas directors’ guardian obligations are to the company, adjusting the company’s interface with shareholders’ interface is significant. Executives must guarantee reasonable treatment of all shareholders and keep up responsibility and straightforwardness. Shareholders have legitimate response in case chiefs breach their obligations, counting the proper to bring subsidiary activities on sake of the company.
In rundown, executives in Hong Kong owe guardian obligations to the company, in a roundabout way defending shareholder interface by guaranteeing reasonable and judicious administration of the company’s undertakings