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The only defence obtainable to a director is that, from the time when he knew or ought to have concluded that there was no cheap prospect that the company would avoid going into insolvent liquidation, he took every step that he ought to have taken in the direction of minimising potential losses to creditors. In assessing the conduct of the director, the court must assume that the info that the director ought to have known or ascertained, the conclusions that he ought to have reached and the steps that he should have taken had been people who would have been recognized or ascertained or reached or taken by a fairly diligent particular person with each the general information, ability and experience which the director truly has and the overall knowledge, talent and expertise which could fairly be expected of a person finishing up the same operate as the director carried out in relation to the company ( IA86 , section 214).
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