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Directors' Duties - Coggle Diagram
Directors' Duties
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(2) Care, skill & diligence
- Director must exhibit expected degree of skill based on his knowledge & experience
- The standard expectation of director depends on their knowledge & experience
- Directors with more knowledge & experience are expected to exercise more CSD
- Director's duties arise during board meetings
- Objective test - same responsibility
- Subjective test - Additional knowledge, skill & experience
[Daniels v Awa Ltd] Minimum standard of CSD:
- Director must have basic understanding of co's biz
- Director must be familiar with the co's biz
- Directors must be kept informed about co's activity
- Requires general monitoring of co's biz affairs (Need attend board meetings regularly)
- Directors should maintain familiarity with the financial status of company (by regular review of financial statements)
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Rights/ powers/ duties/ obligations of directors are prescribed in CA 2016, unless modified by company constitution
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