Summary
Summary Director Duties
- Course
- Institution
A concise but detailed set of revision notes regarding director duties, breaking down each duty under the Companies Act 2006. Exam-ready.
[Show more]
Seller
Follow
PinkTamwar
Reviews received
Content preview
DIRECTOR DUTIESDirectors duties consider the duties that director owe to the company. The courts have
adopted a strict approach towards the standard of care and skill expected of directors in the
performance of the management roles. A concern of both equity and common law courts was
to develop a corpus of rules designed to prevent directors from abusing their considerable
powers. The policy objective is based on prophylaxis and the result is a formidable body of
reported decisions in which the judges have developed the contours of director liability.
However, as directors are fiduciaries, much of the case law on their duties is founded from the
law of trusts and agency.
In addition to the courts, legislation has also imposed a range of duties, devised as a reactive
measure against specific abuses of power by directors, particularly in relation to fraudulent
asset stripping. The CA accommodates these provisions under Part 10 of the Act.
Historically, the duties of directors was set out in a mass of case law, spanning over 200 years,
and was based on the common law of negligence, equity and trusts. The result was an
inaccessible and out of date mass of judgements which was very unclear; in order to
understand their own duties, directors would need to undergo reading huge amounts of case
law or obtain costly legal advice.
It was therefore decided that the common law rulings would be codified into statutory
provisions, thereby providing an authoritative and accessible statement of director duties.
Accordingly, the common law has now been replaced by s171-177 CA 2006. However, the
common law rulings still remain very relevant today and should be considered alongside the
statutory duties.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PinkTamwar. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now