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Professional Negligence and Liability

Chapter 23 DIRECTORS AND OFFICERS - authored by Deepak Nambisan and Adolfo Paolini I. INTRODUCTION 23.1 Since a company cannot act in person, directors are the officers who are usually entrusted with the running of its affairs. The subject-matter of this chapter is the law relating to (i) the liability of company directors and officers to the company and (ii) their liability to third parties. 1 As we shall see, 2 although directors are not yet considered members of a profession, recent developments in the common law suggest that they are set upon such a course, at least in terms of the test as to the duty of care and skill owed, if not the standard of care required of them.

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