What is NOT one of the fiduciary duties of the board?

The duty to the shareholders is not traditionally recognized as one of the primary fiduciary duties of a board of directors. The three fundamental fiduciary duties include the duty of care, the duty of loyalty, and the duty of obedience.

The duty of care requires board members to make decisions with the same diligence and prudence that a reasonably careful person would use in comparable circumstances. This promotes informed decision-making and protects the organization’s interests.

The duty of loyalty necessitates that board members act in the best interests of the organization, avoiding conflicts of interest and self-dealing. This duty ensures that decisions made by the board prioritize the organization's well-being above personal gain.

The duty of obedience mandates that board members ensure that the organization adheres to its stated goals, complies with applicable laws, and follows its bylaws and other governing documents. This duty fosters accountability and alignment with the organization's mission.

While the shareholders are important stakeholders in a corporation, the fiduciary duties are primarily directed toward the organization as a whole, emphasizing the board's responsibilities to the institution rather than directly to shareholders individually. Therefore, the distinction of a "duty to the shareholders" as a fiduciary duty is not upheld in the same way as the aforementioned duties.