Due diligence of members of the management body of a capital company
A limited company through appointing a member of its body expects that the function thereof shall be performed with due diligence and in line with a professional nature of the activity which shall demonstrate the level higher than the average. In this scope, the establishment of the requirements will be possible through determining a “diligent guardian” model. The activity performed by a member of the management body who does not keep to this model, shall result in liability for damages. In the case of a member of the Management Board, the increased standard of care shall apply in the evaluation of the fault under Art. 293 (1) of the Commercial Companies Code.
ASJC: 3308
JEL: K31
