Using your knowledge of director's duties, discuss the correctness of the below statement (IRAC).

"Company directors have to exercise a very high standard of care and diligence under both the Corporations Act and case law because if they make a decision that causes any damage to the company, they will be personally liable to creditors.

" NOTE: In order to determine whether the statement is correct or not, you must discuss the scope and meaning of the duty of care and diligence as well as describe the potential liability for breach of this duty. You must state whether the statement is correct or not in either the introduction or the conclusion of your answer.