Frankie and Geoffrey have been the directors of a bank for ten years. Both of them are also chartered certified accountants.

A month ago, they loaned the money of the bank to a person without checking and complying with statutory regulations applying to the loan. As a result, the bank cannot recover the loan and has suffered damages.

Required:

(a) In relation to Companies Ordinance (Cap 622), state the statutory standard of the duty of care and skill owed by directors to their company

(b) Explain whether Frankie and Geoffrey are liable for breaching the duty of care they owe to their company