Co. went into liquidation after BSE crisis. Co. had 4 directors. Mr. Delaney only executive director. His wife was a non executive director and there were 2 other non executive directors. It was held that Mr. Delaney was irresponsible for failing to hold regular meetings and not producing financial info. to fully inform the other directors of the extent of the financial difficulties. The question - Could the other non executive directors be held responsible? All directors must take reasonable steps to ensure they can inform themselves about the company's affairs so they can guide and monitor the management of the company. The judge found that Mr. Delaney's wife had taken no active role in the affairs of the company. She was aware of the difficulties but left it to her husband to inform the other directors. He failed to do so and she left it at that. This was a breach of her duty as when she agreed to become a director she assumed a separate responsibility despite loyalty to her husband. The other 2 directors did not ensure they were informed of the company's affairs and they didn't monitor and supervise the affairs of the company. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "FE-1 Study Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.ie/group/FE-1-Study-Group?hl=en-GB -~----------~----~----~----~------~----~------~--~---
