duty (noun, du-ty, \ ˈduː.t̬i \) act (verb, act, \ ækt \) honestly (adverb, hon-est-ly, ˈɑːnɪstli \ good (adjective, good, \ ɡʊd \) faith (noun, faith, \ feɪθ \)
Definition: is a responsibility of a company’s director, head, or CEO to act taking into the account the best interests of the company. However, the term may be interpreted in a broader sense. Oftentimes it is referred to as a duty to act honestly, mostly in state institutions, court, and parliament sessions. Additionally, the term may be applied to business partnerships and relations. In this case, it implies an obligation to act in a position of trust towards the partner and other than in your own interest. Oftentimes, the duty to act honestly and in good faith may refer to the company director’s responsibility to act in a specific way that will benefit the shareholders equally, other than work for a personal profit.Transcription:
In a Sentence:
- A true leader has to know how to manage the company taking its best interests into consideration. Such a person will forget about his or her own desires and will always remember their duty to act honestly and in good faith.
- Apparently, our director has forgotten what it’s like to run the business honestly. The words “duty to act honestly and in good faith” probably mean nothing to him.
Synonyms and related words: coming clean, playing fair, putting one’s cards face upwards on the table, agreement to agree.
