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 people are honest and do their best, it does not matter how incompetent they are.

Question

Quizplus · Accepted Answer

The standard of care for directors and officers is not solely based on their subjective beliefs and efforts, but also on their objective competence and skill. They can be held liable for breaching their duty of care even if they believe they acted in good faith.

Because the Duty of Care Requires That Directors and Officers