Re City Equitable Fire Insurance Co
Encyclopedia
Re City Equitable Fire Insurance Co [1925] Ch 407 is a UK company law case concerning directors' duties
, and in particular the duty of care. It is no longer good law, as it stipulated that a "subjective" standard of competence applied. Now under CA 2006 section 174, and given the development of the common law in Re D'Jan of London Ltd
, directors owe an objective standard of care based on what should reasonably be expected from someone in their position.
Directors' duties
Directors' duties are a series of statutory, common law and equitable obligations owed primarily by members of the board of directors to the corporation that employs them. It is a central part of corporate law and corporate governance...
, and in particular the duty of care. It is no longer good law, as it stipulated that a "subjective" standard of competence applied. Now under CA 2006 section 174, and given the development of the common law in Re D'Jan of London Ltd
Re D'Jan of London Ltd
Re D’Jan of London Ltd [1994] 1 BCLC 561 is a leading English company law case, concerning a director's duty of care and skill, whose main precedent is now codified under s 174 of the Companies Act 2006...
, directors owe an objective standard of care based on what should reasonably be expected from someone in their position.