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Duty of Loyalty

By IncNow | Published October 19, 2013

The duty of loyalty is a default fiduciary duty that anyone acting on behalf of a corporation owes to the business. This duty requires that the individual’s actions taken on behalf of the business be in the business’s best interest, rather than personal interest. One cannot engage in self-dealing and if one does, it must be entirely fair and would not be protected by the business judgment rule.

When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go