Which obligation requires Board Members to be prudent and use due diligence?

The correct choice pertains to the Duty of Care, which mandates that Board Members fulfill their responsibilities with the diligence and prudence that a reasonably prudent person would exercise in a similar situation. This obligation requires that board members make informed decisions and act in the best interests of the organization, considering all relevant facts before arriving at a conclusion.

Board members must engage actively in discussions, seek out necessary information, and involve experts when required, all while ensuring that their judgment is well-founded and aligned with the organization's goals. This duty directly relates to the principle of acting responsibly and avoiding negligence in decision-making.

While other duties like the Duty of Loyalty and the Duty of Obedience emphasize different aspects of governance—such as loyalty to the organization and adherence to its governing documents, respectively—the Duty of Care specifically focuses on the standard of conduct and the careful decision-making process expected from board members.