The importance of a director’s duty in exercising care and due diligence was stressed by the judge in a case involving Centro; the shopping centre owner. It was ruled that the directors were in breach of the Corporations Act as a result of failing to take reasonable steps to ensure that the accounts were correct. The directors in question had approved financial accounts that had classified over $2 billion in short -term loans as long-term loans. The decision identifies the importance of directors being able to have a basic understanding of basic accounting and in not placing reliance on management and external advisors. To delegate such responsibility is fraught with danger.