Neese Trustee in the bankruptcy for the First Trust Company brings suit against the directors for failure to use due diligence and to recover losses as a result of these actions or failures to act. The Neese Trustee for the First Trust Company cite in their suit that the directors were negligent in their actions and that they did not discharge their duties as required as directors, they further state that they did not give the required time and attention required of them, this is a crucial detail because in the amendment of the revised act made in 1999, the matter of law is would a similar director in the same or like situation act as this director or directors did? Hence the question becomes was his or her behavior appropriate to the situation and running of the corporation and would another director or directors behavior similarly.
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Brown. The last point that the plaintiff’s make in this case is that the directors failed to supervise properly and failed to review reports.
Under duty of diligence the directors must perform their duties in good faith, with the same or similar to those in a similar situation would behave and in a manner a reasonable person in a similar situation has reason to believe is in the best interest of the company or corporation.
If the judge and jury find that the directors acted within the scope and range of what is required and that a similar director in another corporation would behaves as such then the jury or judge would find in favor of the directors and would dismiss the case.
If the judge or jury feels that the directors did not perform their duties as required and that they did not use good faith, another director would have performed differently and that the directors were not acting in the best interest of the company than the judge and jury may find for the plaintiff’s in this
Brown. The last point that the plaintiff’s make in this case is that the directors failed to supervise properly and failed to review reports.
Under duty of diligence the directors must perform their duties in good faith, with the same or similar to those in a similar situation would behave and in a manner a reasonable person in a similar situation has reason to believe is in the best interest of the company or corporation.
If the judge and jury find that the directors acted within the scope and range of what is required and that a similar director in another corporation would behaves as such then the jury or judge would find in favor of the directors and would dismiss the case.
If the judge or jury feels that the directors did not perform their duties as required and that they did not use good faith, another director would have performed differently and that the directors were not acting in the best interest of the company than the judge and jury may find for the plaintiff’s in this