Francis v. United Jersey Bank

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Teachings

As the basic duty of care, you cannot do nothing as a director. You must at least:

  1. Be informed
  2. Familiar with financial statements
  3. Familiar with the business
  4. Make further inquiry into suspicious behavior

Additional Notes

This case is not really a duty of care case as the party being harmed was actually a third party and not the corporation itself. For this reason, this case is more of a piercing case.