prudent man rule
Definition from Wiktionary, the free dictionary
- (law, investment) A standard for the duty of a fiduciary with responsibility over investments.
2005, World Bank; International Monetary Fund, Financial sector assessment: a handbook, page 455:
- Prudent man rules also require that greater financial and legal responsibility be attached to any imprudent action by corporate officers.
- For usage examples of this term, see Citations:prudent man rule.