The duty of care and diligence is set out in which ONE of the following provisions of the Corporations Act 2001 (Cth)?Question 2Answera.
Question
The duty of care and diligence is set out in which ONE of the following provisions of the Corporations Act 2001 (Cth)?
Question 2
Answer
a.
Solution
The duty of care and diligence is set out in Section 180 of the Corporations Act 2001 (Cth). This provision establishes that directors and other officers of a corporation must exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise in the same circumstances. This is a critical component of corporate governance and is designed to ensure that those in positions of responsibility make informed and prudent decisions in the best interests of the corporation and its stakeholders. The standard of care is based on both the knowledge and experience of the director or officer, as well as the specific circumstances surrounding their decisions.
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