What is required of a director under the Duty of Care?

The requirement for a director under the Duty of Care mandates that they must act with the care that a prudent person would use in managing their own business. This standard reflects the expectation that directors should make informed and reasonable decisions when overseeing the corporation's affairs and ensure that they are exercising due diligence in their responsibilities.

By adhering to this standard, directors demonstrate a commitment to the interests of the corporation and its shareholders. This involves staying adequately informed, considering relevant information, and making choices that align with what a sensible businessperson would do in a similar situation.

The other options reflect misunderstandings of the Duty of Care. Taking risks with corporate funds, for example, goes against the prudent approach expected from directors. Excessive risk-taking without proper assessment or consideration of the consequences could jeopardize the corporation's financial health. Similarly, delegating all important decisions undermines the director's responsibilities and accountability. Lastly, ignoring potential risks is counter to the very essence of the Duty of Care, which is about being proactive and cautious in corporate governance.