Board Essentials Module 6: Director Liability

Serving as a bank director could lead to personal liability. The potential increases when directors don’t understand the fiduciary duties they owe to the bank, bank’s shareholders, and customers – especially the duties of loyalty and care. Furthermore, bank directors are held to high standards of professional conduct, which require directors to make reasonable business decisions on a fully informed basis after proper deliberation. This session will fully explain bank directors’ duties of loyalty and care and the reasonable business judgment rules to help protect directors from personal liability.