A director or officer is required to exercise the care that an ordinarily prudent person would exercise in similar circumstances.

Question

Quizplus · Accepted Answer

This statement is a part of the duty of care owed by directors and officers to their company and its shareholders, as established by the legal principle of fiduciary duty. They are expected to act with reasonable care, skill, and diligence in carrying out their responsibilities, and to make informed and independent decisions in the best interests of the company.

A Director or Officer Is Required to Exercise the Care