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Which of the following positions best describes the nature of the Board of Directors of XYZ Co.'s relationship to the company?
A. Agent.
B. Executive.
C. Fiduciary.
D. Representative.
【正確答案】C
【答案解析】
Explanation
Choice "C" is correct. The board of directors has a fiduciary responsibility to act on behalf of and in the best interest of the corporation.
Choice "A" is incorrect. The board of directors is not primarily charged with acting as an agent of the corporation. Employees, for example, act as agents.
Choice "B" is incorrect. The board of directors is not primarily charged with acting as an executive in fulfilling their fiduciary responsibility to the corporation. Officers, for example, act as executives. Choice "D" is incorrect. The board of directors is not primarily charged with acting as representatives in fulfilling their fiduciary responsibility to the corporation. Corporate attorneys or employees, for example, fulfill the role of representative.
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