Duty of Care and Skill Flashcards
what is the difference between duty of care and fiduciary duties
fiduciary duties are based on good faith and loyalty, duty of care is the standard of conduct we can hold the directors to
is duty of care a fiduciary duty
no
what is the broad general principle for the duty of care and skill under the common law
directors are liable for negligence in the performance of their duties
have the courts adopted a strict approach to duty of care as they have done to fiduciary duties?
No they have adopted a lenient approach
what is the duty of care and skill based on
It is based on Aquilian liability
is the common law duty subjective or objective
it is subjective - directors were expected to only exercise the degree of care and skill that they were capable of , the directors ignorance could protect them from liability.
what was expected of directors under the duty of care and skill under the common law
a director was required in the performance of his or her duties to exercise care and skill that may be expected of a person with his or her knowledge and experience
what does skill refer to
the technical competence of the director
what does care refer to
the manner in which the director’s technical competence , knowledge is applied . Care may objectively assessed but skill varies from person to person.
