What standard of care does management owe?
Managing directors must apply the care of a prudent businessperson in the affairs of the company. If they breach their duties they are jointly and severally liable to the company for the resulting loss.
Share this page
Source
- Source
- Limited Liability Companies Act, section 43
- Acts
- Act on Limited Liability Companies
- Area
- Company, accounting and supply chain
- Checked
- 2026-09-21
Questions
Next step
Three ways to put the register to work in your own practice.
Start with your task
Litigation
Find support in a judgment
Search guiding decisions, see what became final and follow changes in the law.
In-house, deals
Map the rules in a transaction
Move from theme to act and on to the article that carries the duty.
Compliance
Assess the risk in a process
Risk scoring per legal area, with the sources behind every score.