 Cases under the Company Director Disqualification Act 1986, such as "Re Barings plc (No 5)" show that directors will also be liable for failing to adequately supervise employees or have effective risk management systems, as where the London directors ignored a warning report about the derivatives business in Singapore, where a rogue trader caused losses so massive that they brought the whole bank into insolvency.The central equitable principle applicable to directors is to avoid any possibility of a conflict of interest, without disclosure to the board or seeking approval from shareholders.This core duty of loyalty is manifested firstly in section 175 which specifies that directors may not use business opportunities that the company could use, unless they have approval.