Be careful of what you buy as an executive

If you are the managing director of a company, be careful of what assets you purchase for the company. Each purchase should be carefully considered to determine whether it is useful for the company and whether it will have true economic benefit. According to the Supreme Court, if the managing director uses the company's money to purchase property that is not needed or is for his or her personal use, this may constitute a breach of due managerial care. In extreme cases, this may even result in the individual’s withdrawal from the position of managing director.