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Facts:
- A profitable company suffered major losses as a result of some bad investment decisions.
- Trustee in bankruptcy brought action against the directors and auditors alleging negligence and breach of duty.
Issue: What is the common law standard of care for directors and officers?
Held: Objective standard, subjectively applied.
Reasoning:
- The duties of a director depend on the nature of the co's business and the manner in which the co's work is distributed btwn the directors and other officials [i.e., the size of the corp].
- In discharging these duties, he must exercise some degree of skill and diligence; he must take reasonable care.
However;
o A director need not exhibit a greater degree of skill than may reasonably be expected from a person of his knowledge and experience, i.e. directors are not liable for mere errors of judgment;
o A director is not bound to give continuous attention to the affairs of his company - he is not bound to attend all meetings but rather must only attend when he is reasonably able to do so;
o In respect of all duties properly left to another official, the director, unless there are grounds for suspicion (i.e. as to the person's integrity, skill or competence), is justified in trusting that official to perform such duties honestly.
Rule:
- Directors' duty of care → standard is reasonable person given the individual director's knowledge and experience.
- Director not bound to give his full time to the job; must only attend meetings when reasonably able to do so.
- Director is justified in relying on documents prepared by/advice of others in absence of grounds for suspicion.
What else can I help you with?
What happened to Old Southern equitable Life Insurance Company in Little Rock Arkansas?
Old Southern Equitable Life Insurance Company in Little Rock, Arkansas was declared insolvent in 1991 by the Arkansas Insurance Commissioner. The company was liquidated, and policyholders received a portion of the benefits owed to them through state guaranty associations.
What are facts case in dead rising 2?
The facts case is where you end up fighting Sullivan.
What are relevant facts?
Facts relevant or pertinant to a case
In a given case most courts may grant?
legal remedies, equitable remedies, or both
What does Adams say was the bigger issue beyond the specific facts of the case?
Adams emphasizes that the bigger issue beyond the specific facts of the case lies in the broader implications for justice and the rule of law. He argues that the case highlights systemic inequalities and the need for a more equitable legal system. Additionally, it raises concerns about the impact of public opinion and political pressures on judicial outcomes. Ultimately, Adams calls for a deeper reflection on the principles that govern legal proceedings and societal values.
In casu literally means out of facts?
I take it literally mean "in this case." I.e., from the facts about the particular case.
When was The Facts in the Case of M. Valdemar created?
The Facts in the Case of M. Valdemar was created in 1845-12.
The Oregon case 1925 is significant in that it?
The Oregon Case of 1925 guaranteed the right of private schools. The Oregon legislature passed a law that required all children to attend public schools.
When a previous case is distinguished from the facts about a case presented to a court how must the court proceed?
If a previous case is properly and convincingly distinguished on the facts, the ruling in that case may be inapposite.
What does denied without prejudice mean in a public hearing?
Means all the facts in the case were heard before the case was dismissed.
What does nature of the case mean?
This is the argument of a case rather than the hard facts of a case
What is insurance that protects a homeowner in case of a property ownership dispute?
title insurance
