# Companies Act 2006, Section 174: Duty to exercise reasonable care, skill and diligence


(1) A director of a company must exercise reasonable care, skill and diligence.
(2) This means the care, skill and diligence that would be exercised by a reasonably diligent person with—
(a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company, and
(b) the general knowledge, skill and experience that the director has.

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Source: https://www.legislation.gov.uk/ukpga/2006/46/section/174 (the official version)
Page: https://openlegislation.uk/companies-act-2006/section-174
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.