Re City Equitable Fire Insurance [1925]

Romer J set out three important rules:

1. Director need not exhibit in performance of his duties a greater degree of skill than may reasonably be expected from person of his knowledge and experience.

[Note this standard refers to reasonable man with skills actually possessed by particular director in question.

Does little to protect public where inappropriate appointment has been made.]

2. Director not bound to give continuous attention to affairs of his company.

His duties are of intermediate nature, to be performed at periodical board meetings, committee meetings, etc.

He is not bound to attend all such meetings, although ought to attend whenever in circumstances he is reasonably able to do so.

3. In respect of all duties that, having regard to exigencies of business and articles of association, may properly be left to some other official, a director is, in absence of grounds for suspicion, justified in trusting that official to perform such duties honestly.