Company Director Reliance Guidelines

Summary

Section 76(4)(b) of the Companies Act allows a company director to rely on the performance of individuals specified in subsection (5) or those to whom the board has delegated authority. This includes relying on information, opinions, recommendations, reports, or statements, including financial data, prepared by these individuals. Directors must act with care, skill, and diligence expected of someone in their position. Understanding these provisions can help directors fulfill their duties effectively.

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No: put the following in a paragraph: (*) In respect of any particular matter arising in the exercise of the powers or the performance of the functions of director, a particular director of a company— (b)is entitled to rely on— (i) the performance by any of the persons— (aa) referred to in subsection (*); or (bb) to whom the board may reasonably have delegated, formally or informally by course of conduct, the authority or duty to perform one or more of the board’s functions that are delegable under applicable law; and (ii) any information, opinions, recommendations, reports or statements, including financial statements and other financial data, prepared or presented by any of the persons specified in subsection (*).
In respect of any particular matter arising in the exercise of the powers or the performance of the functions of director, a particular director of a company is entitled to rely on the performance by any of the persons referred to in subsection (*) or to whom the board may reasonably have delegated, formally or informally by course of conduct, the authority or duty to perform one or more of the board’s functions that are delegable under applicable law; and any information, opinions, recommendations, reports or statements, including financial statements and other financial data, prepared or presented by any of the persons specified in subsection (*).
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What about: A director of a company may rely on the performance by any of person referred to in section *(*) or to whom the board has delegated the authority or duty to perfomr on or more functions of teh board as well as any information, opinions, recommendations, reports or statements, including financial statemetns and datea, prepared or presented by such.
A director of a company may rely on the performance by any person referred to in Section *(*) or to whom the board has delegated the authority or duty to perform one or more functions of the board, as well as any information, opinions, recommendations, reports, or statements, including financial statements and data, prepared or presented by such.
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