| Commentary

46.2 Guidance from case law

| Commentary

46.2 Guidance from case law

Although the previous law on the duty to exercise reasonable care has been codified, the case law is still instructive as to the scope of the duty. This case law suggests that the courts are not concerned with mere errors of judgment on the part of directors in carrying out the business affairs of the company. A director would however be in breach of his duties if he signed documents without considering what he was signing1.

Another area which has caused problems in the past is whether a director can be in breach of his duty

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