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the director is expected to reach conclusions and take steps as a reasonably diligent person would take. the legislation also expects such a director to ;
1. have general knowledge , skill, and experience which may reasonably be expected of a person carrying out the same function as were carried out by director (i.e this is an objective test)
2. use the general knowledge , skill and experience he himself has ( this is a subjective test)sir i could not get both points. can u plz explain me
These don’t sound like my words! I assume that you’ve read these in some study text.
I’ll try to make some sense of them for you
If you are to be appointed as a director of an entity, you will be expected to act with “reasonable skill, care and diligence” commensurate with you holding the office of director
That applies to anyone that is appointed as a director of the board of all entities
However, should you also possess some particular qualification, you are expected to bring to the office of director such skills generally associated with that qualification
A sales director that has a history of 35 years’ selling experience is expected not to make naive errors in carrying out the responsibilities of a sales director
Of greater relevance to you is the illustration of the qualified accountant finance director – that person shall bring to the office all those financial, management, taxation skills that you could reasonably expect to be within the knowledge of a qualified accountant
OK?
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