COMPANY DIRECTORS: DUCKING RESPONSIBILITY IS NOT SO EASY

On 10 September, an article from ParrisWhittaker is concerned with a recent High Court case in England, which it says is a useful illustration of what happens when directors take their eye off the ball.  It shows that a director who delegates a particular function to another is not absolved from his own duties as a director in respect of those functions.  In the case, the judge didn’t think the director involved was dishonest – instead he had acted naively and, in some respects, negligently.  It is said that the case demonstrates that directors can’t afford to adopt a passive approach to fulfilling their duties, as individual directors can face legal claims and judicial sanction even in the absence of any wrongdoing on their part. 

https://parriswhittaker.com/company-directors-ducking-responsibility-is-not-so-easy

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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