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COMPANY LAW: Doing your duty

27 January 2012  

Nicola Bridge and Felicity Crowe assess the impact of directors’ duties

Directors are appointed by shareholders to manage the business and affairs of their company and are in a position of trust. The press is often full of examples of the abuse of this position with tales of bribes, secret profits and misappropriation of company property by directors. Over the past five years, directors have therefore been subject to increased regulation in respect of their decisions and management, for example, by the implementation of the Bribery Act 2011. However, in this ever-changing environment it is crucial that directors do not neglect the basic duties that they owe to the company.

 

 

Additional Info

  • Case(s) Referenced:

    Re Allied Business and Financial Consultants Limited [2009] 2 BCLC 666

    Gwembe Valley Development Company Limited & anor v Koshy & ors [2003] EWCA Civ 1048

    Industrial Development Consultants v Cooley [1972] 1 WLR 443

    James Joseph Gray v New Augarita Porcupine Mines Limited (Ontario) [1952] UKPC 4

    Regal (Hastings) Ltd v Gulliver [1942] UKHL 1

    Towers v Premier Waste Management Ltd [2011] EWCA Civ 923