The determination of whether a corporate director or officer has met his or her duty of care is measured as of the time the decision is made; the benefit of hindsight is not a factor.

Question

Quizplus · Accepted Answer

The statement is true. The duty of care of a corporate director or officer is evaluated based on the information available to them at the time the decision was made, not on the outcome of that decision. This is to encourage thoughtful decision-making rather than risk-averse decision-making based on hindsight.

The Determination of Whether a Corporate Director or Officer Has