Fiduciary duties of Member of the Board

The current regulation of Commercial law grants to any Member of the Board of commercial company wide powers to act with Company's assets to provide financial benefits for shareholders. However, this does not mean permissiveness. Fiduciary duties of Board Member to act as honest and careful manager doesn’t allow to act in conflict with interests of the Company. To determine the results the following materials will be analyzed: The Commercial Law and the respective Commentary; legal doctrines, that analyze the fiduciary duties; and case law.An analytical and descriptive method will be used to reach conclusions. The descriptive method will help to define the standard of “honest and careful manager” and to determine the fiduciary duties, that are binding for the Board Member. The analytical method will provide an opportunity to find out in which cases Board Member had acted with due care and loyalty to the company, but when he had fault. The result will establish, that each member of the board of any commercial company shall be loyal to the company and shall manage affairs of the company with respective care, that excludes any subjective risk of neglect. The fiduciary duty of Board Member to be loyal to the Company means an obLīgation, primary to take care of the welfare of the Company and ensure shareholders of the Company with maximum possible income. The duty of care shall prevent a Member of the Board from carrying out his duties carelessly. Board Member shall be able to evaluate a future transaction to exclude possibility of even minimal losses for Company.