Reviewed case brief
Re City Equitable Fire Insurance Co
[1925] Ch 407
The Court of Appeal established the standard of care expected from directors in the discharge of their duties. Directors need not exhibit a greater degree of skill than may reasonably be expected from persons of their knowledge and experience. They are entitled to trust the honesty of company office
- Court
- Court of Appeal
- Year
- 1925
- Subjects
- Company Law
- Reviewed
- 2026-06-30
Rule established
Directors are required to show a degree of skill reasonably expected from persons of their knowledge and experience; they are entitled to trust officers and delegate unless grounds for suspicion exist.
Facts
Issues
Held
Ratio decidendi
How to use it in an exam
Editorial source
[1925] Ch 407
Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.