Duty to Exercise Reasonable Care, Skills and Diligence Flashcards
(3 cards)
1
Q
What section is the duty to exercise reasonable care, skill and diligence?
A
Section 174 CA 2006
2
Q
Will the court go easy on them?
A
Unlikely - decent experience as have run company for 5 years
3
Q
What could happen due to Chen’s fraudulent activity and David’s misuse of funds?
A
- both held liable if company suffers financial loss
- chen could face criminal charges under Fraud Act 2006
