corporations

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.

Foreign Direct Investment

Foreign Direct Investment: An Overview

The International Monetary Fund (“IMF”) defines foreign direct investment (“FDI”) as a “cross-border investment” in which an investor that is “resident in one economy [has] control or a significant degree of influence on the management of an enterprise that is resident in another economy.” IMF, Balance of Payments and International Investment Position Manual 100 (6th ed. 2009).

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