| Commentary

46.1 Statutory duty

| Commentary

46 Duty to exercise reasonable care, skill and diligence

46.1 Statutory duty

A director of a company must exercise reasonable care, skill and diligence1. This means the care, skill and diligence that would be exercised by a reasonably diligent person with both2:

  1. 46.1.1

        the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by that director in relation to the company; and

  2. 46.1.2

        the general knowledge, skill and experience which that director actually has.

The Companies Act 2006 embodies the ‘objective-subjective’ test developed by the

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