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A potential social influence-related cost of undirected interlocks results from uncertainty regarding the outside directors' loyalty.
Therefore, the focal firm needs to be alert with respect to these directors' loyalty and monitor whether their advice and actions are in the firm's best interests or not.
First, various reforms in corporate governance assign more specific responsibilities to directors, arguably reorienting directors' loyalty to due discharge of a specified function along with ongoing or residual duties of loyalty owed in more general terms to the corporation and its shareholders.
Directors' loyalty should be to the shareholders and the company.
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Further complicating the issue of director loyalty is disparate shareholdings among board members.
"It gives us the opportunity to build a larger revenue channel, the ability to make money from foreign revenue conversion," said Simon Pomeroy, director of loyalty at Air New Zealand.
Comey has alleged that, before Trump fired him, the president requested that his FBI director pledge loyalty and urged him to back off his investigation into former national security adviser Michael Flynn.
Directors' Duties of Loyalty and Care.
It also, serendipitously, set the table for "Inception" by rehearsing some important terms of debate: Do certain directors inspire unreflecting loyalty from both professional critics and passionate movie fans?
John Coffee, a Columbia University professor of securities law, said the Nabors lawsuit, if filed in Bermuda, would be rejected by courts there because directors owe their loyalty to the company, not its owners.
VFB's second claim against Campbell is that Campbell aided and abetted a breach of the VFI directors' duty of loyalty to VFI when it entered into the spin transaction knowing that the VFI directors were simultaneously serving as officers of Campbell.
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CEO of Professional Science Editing for Scientists @ prosciediting.com