The duty of reasonable care expected of a company’s directors is generally said to be that of an ordinary prudent person might be expected to take in the circumstances on his own behalf, with the knowledge and experience of the director concerned. The court discussed the duties of a company director. Romer LJ said: ‘In respect of all duties that, having regard to the exigencies of business, and the articles of association, may properly be left to some other official, a director is, in the absence of grounds for suspicion, justified in trusting that official to perform such duties honestly.’
Romer J
[1925] Ch 407, [1924] 3 All ER 485
England and Wales
Cited by:
No longer good law – Equitable Life Assurance Society v Bowley and others ComC 17-Oct-2003
The claimant sought damages against its former directors for negligence and breach of fiduciary duty. The defendants asked that the claims be struck out.
Held: It was no longer good law that directors might leave the conduct of the company’s . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 20 January 2022; Ref: scu.187449
