The Due Diligence Defense

A board should be concerned with due diligence. The concept of due diligence is one that is explained often by what it is not. If a board is negligent they have not shown the proper amount of due diligence. If the board is diligent they are not negligent. I often use a teeter- totter to explain this concept.

The due diligence defense comes up in my world, often in the context of whether the board members will have to…