Part 10A company’s directors

Chapter 2General duties of directors

The general duties

174Duty to exercise reasonable care, skill and diligence

1

A director of a company must exercise reasonable care, skill and diligence.

2

This means the care, skill and diligence that would be exercised by a reasonably diligent person with—

a

the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company, and

b

the general knowledge, skill and experience that the director has.