COMMERCE

Dodd-Frank: Title I - Financial Stability

Introduction:

         Title I expands federal research, evaluation, and oversight of large financial institutions in order to find efficient ways to manage risks to the financial stability of the United States.  The Title establishes two new government departments, the Financial Stability Oversight Council (FSOC), and the Office of Financial Research, an office within the Treasury.  Title I also ex

Duty of Good Faith

Definition

The duty of good faith stands for the principle that directors and officers of a corporation in making all decisions in their capacities as corporate fiduciaries, must act with a conscious regard for their responsibilites as fiduciaries. A violation of the duty of good faith may include an intentional derelict in the usual duties of an director or officer, intentionally acting for a purpose other than the benefit of the corporation, or intentionally violating the law.

Duty of Loyalty

Definition

The duty of loyalty stands for the principle that directors and officers of a corporation in making all decisions in their capacities as corporate fiduciaries, must act without personal economic conflict. The duty of loyalty can be breached either by making a self-interested transaction or taking a corporate opportunity.

See: Self-dealing.

Participating preferred stock

Definition

Stock that confers the holder a right to be paid first, before common (non-preferred) stockholders in the event of a dividend or liquidation payout, and additionally the right to also participate along with the common stockholders in receiving payment on the remaining payout.

See also

Pages

Subscribe to RSS - COMMERCE