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.
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