What is the ratio in Re D'Jan?

The duty of care owed by directors is judged objectively by reference to what could reasonably be expected of a person carrying out the same functions as the director.

What did the court decide in Re D'Jan?

The court found D'Jan breached his duty of care by not reading insurance documents, but granted relief under s.727 as he acted honestly and reasonably.

Why is Re D'Jan important for company law?

It established the modern objective test for directors' duty of care, replacing earlier subjective approaches and providing clearer standards for director liability.

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