Because the duty of care requires that directors and officers exercise the care that a reasonably prudent person would exercise in comparable circumstances, the standard is a subjective one. So long as a person is honest and does their best, it does not matter how incompetent they are.

Question

Quizplus · Accepted Answer

The duty of care is an objective standard, requiring directors and officers to act with the care that a reasonably prudent person would exercise, regardless of their personal honesty or effort.

Because the Duty of Care Requires That Directors and Officers