How to stay out of trouble - Directors' and Officers' duty to exercise care, skill and diligence

ICSA has issued a guidance note is designed to help non-executive directors avoid a range of penalties from fines, through to disqualification and imprisonment if they fail to carry out their various duties.

Focusing particularly on the duty to exercise reasonable care, skill and diligence, the guidance covers such issues as:

• Taking responsibility for their own on-going training and continuous development;
• Being prepared to provide independent oversight and constructive challenge;
• Insisting on receiving high-quality information;
• Making decisions objectively in the interests of the company and
• Avoiding conflicts of interest

Prospective non-executives are also advised to undertake their own due diligence before taking on the role, satisfying themselves that the company is one in which they can have confidence, and can make a strong and value added contribution ... READ MORE

Released by ICSA - 24 January 2013