Complex sentence: Directors have a duty to exercise reasonable skill care and diligence-This right enables the company to seek compensation from its director if it can be proved that he hasn't shown reasonable skill or care which in turn has caused the company to incur a loss.
Split into simpler sentences: Directors have a duty to exercise reasonable skill care and diligence. This duty enables the company to seek compensation from its director if it can be proved that a director has not shown reasonable skill or care which in turn has caused the company to incur a loss.