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THE DISHONEST OR NEGLIGENT DIRECTOR HAS LITTLE TO FEAR FROM UK COMPANY LAW. DISCUSS
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THE DISHONEST OR NEGLIGENT DIRECTOR HAS LITTLE TO FEAR FROM UK COMPANY LAW. DISCUSS In addition to fiduciary duties directors "owe a duty of skill and care to the company. If they fail to meet this they may be liable in negligence to the company."1 According to Lord Lindley MR "If directors act within their powers, if they act with such care as is reasonably to be expected from them having regard to their knowledge and experience and if they act honestly for the benefit of the company they represent, they discharge both their equitable and their legal duty to the company."2. The standard is that of a reasonable man looking after his affairs and case law clearly illustrates that the duty imposed is not a very high one. This has in part been attributed to the very nature of business reality. It is worth noting that "seeing honesty and reasonableness...
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