A lawsuit filed by our client company against its former directors and senior management for damaging the company’s interests is scheduled for its first hearing on May 11.

We argue that the company’s chairman and general manager, as directors and senior management, owe a duty of care to the company. They must perform their duties and handle company affairs with the diligence expected of a reasonably prudent person. If directors and senior management breach this duty of care and cause losses to the company, they should bear corresponding liability for damages.

When the company can provide evidence that directors and senior management signed invalid contracts with external parties, entered into and performed duplicate contracts with different suppliers for the same matter without reasonable justification, and failed to promptly terminate such invalid or duplicate contracts, thereby exacerbating the company’s losses, they should compensate for unnecessary contract costs and the resulting expanded losses.