| dc.description.abstract | The Companies Act No. 07 of 2007 made considerable changes to numerous areas of corporate law in Sri Lanka including the codification of the common law duties of directors which are set forth in the Sections 187 - 200. This was an attempt to make the duties of directors clear, accessible and better known and understood. Section 189 which codifies the common law duty of skill and care of company directors seems to impose a statutory burden on directors in exercising their powers and in decision making. The exact scope and dimensions of the duty are vague as the judiciary in Sri Lanka has not yet interpreted the provisions in the Companies Act relating to duties of directors. The aim of this study is to first summarize the directors' common law duty of skill and care. This will be followed by an examination of the statutory provisions on directors` statutory duty of standard of care, skill and diligence. Next, a comparison with the jurisdictions of UK and Australia is done with particular emphasis on the interpretation of the statutory provisions by the judiciaries in those jurisdictions. A light insight into Business judgment rule is also provided. The study adopts qualitative approach, using comparative study design. The materials used in the study include statutes and a range of case laws as well as published works. The research will provide a useful and easy-to-read, important and impartial source of information for academics, lawyers, directors, shareholders and other interested parties to gain an understanding of directors' duty of skill and care. | en_US |
