Startup Terms Glossary
What is Duty of Loyalty?
Duty of loyalty is a board of directors’ obligation to act in a startup’s best interest when making decisions and to act. It’s one of two primary duties and requires a board member to demonstrate loyalty to the startup at all times. A duty of loyalty can decrease conflicts of interest which mitigates the chance of acting in bad faith.
Duty of Loyalty Examples
Duty of loyalty provision examples include:
- Example 1. Not override the startup’s opportunities
- Example 2. Prioritize the company over personal gain
- Example 3. Keep internal company information private
- Example 4. Avoid personal conflicts of interest
- Example 5. Reasonably disclose any interest conflicts to the board
Here’s a page about the duty of loyalty
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Joseph D.
Corporate attorney with 10+ years of experience, primarily for boutique transactional firms located in New York City.
William M.
Will focuses his legal practice on business, real estate, entertainment, intellectual property, and certain litigation matters. In addition to his legal expertise, he is a owner of a quickly growing bluegrass record label, and has produced chart topping bluegrass albums. Beyond his professional achievements, he has earned acclaim as a bluegrass musician, producer, and songwriter, having toured extensively across North America with well known bluegrass bands. Will is also involved with volunteering and professional groups focused towards music frowth and education. With a distinctive background as an attorney, musician, real estate investor, and business owner, Will offers clients a unique and relatable perspective few attorneys possess.
"Will did a great job of reviewing our commercial lease and explaining the legal implications in a clear way. We hope to work with him again in the future."
Megan B.
20-year business lawyer with extensive experience ranging from Fortune 100 companies to small businesses.
April 7, 2025
Cheri H.
Attorney Hamilton has worked in public service for most of her career with positions in government at the federal and state levels serving as a judicial law clerk, attorney-advisor to federal agencies and an administrative judge for the state of Maryland. She also maintained her own law practice for several years where she assisted various clients with matters ranging from real estate transactions, contract disputes, family law, criminal law and religious law disputes. Attorney Hamilton most recently served as the Chief Legal Officer for a technology startup company and is the founder of Hamilton Advising & Consulting, LLC, a legal and business consulting firm supporting small to medium-sized entities with all things contracts.
April 13, 2025
Myekeal W.
Hi there! I have experience in a variety areas of law by virtue of my experience as assistant general counsel at a major university. I would be happy to help you with any project in which I’m qualified!
April 18, 2025
Miguel P.
I am an experienced transactional attorney specializing in business contracts, real estate transactions, and real estate title work.
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