Duty of skill, care and diligence

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  • Created by: mellon
  • Created on: 28-04-14 16:58
What is skill?
Ability
1 of 10
What is care?
Use of ability
2 of 10
What cases make up the common law?
Dorchester Finance and Re City Equitable Fire Insurance Co
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What happened in Dorchester Finance?
A non-executive with accounting experience did not attend board meetings and executives signed a blank cheque for unsecured money. Both were negligent acts.
4 of 10
What tests came from Re City Equitable Fire Insurance Co?
1) skill as reasonably suspected of person of d's knowledge and experience. 2) no need for continuous attention 3) Can trust other officials to carry out task, unless basis for suspicion
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What remedy can you get for breach of the duty?
Damages only
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What two standards are there in s174?
1) general standard of all directors 2) specific standard of that director with his skill and knowledge
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What happened in D'Jan of London?
Director negligently signed wrongly filled in insurance form which meant insurance could be avoided. Negligent act.
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What happens if you delegate the task?
Westmin Packaging, you still need to supervise and make sure it is done properly, can't just let them take the blame
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What does Secretary of State v Baker say?
need to have knowledge of companies business and pay continuous attention
10 of 10

Other cards in this set

Card 2

Front

What is care?

Back

Use of ability

Card 3

Front

What cases make up the common law?

Back

Preview of the front of card 3

Card 4

Front

What happened in Dorchester Finance?

Back

Preview of the front of card 4

Card 5

Front

What tests came from Re City Equitable Fire Insurance Co?

Back

Preview of the front of card 5
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