CHECK THESE SAMPLES OF Duty to Promote the Success of the Company
Moreover, under section 172 of the CA, there is a new duty deriving from the equitable fiduciary duty principle expressed as a Duty to Promote the Success of the Company.... Section 175 of the CA further imposes a positive obligation on directors to “avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company” (Section 175 of the CA).... As such, this would suggest a conflict of interest with the interest of the company....
6 Pages
(1500 words)
Essay
Companies are more responsible when stakeholders are in a position to respond to the activities of the company.... In this regard, the disclosure requirements of the Companies Act 2006 speaks to informing the shareholders of the company rather than to all stakeholders.... Corporate governance has evolved beyond merely focusing on the contractual relationship between management and shareholders and now takes into account the company's relationship with stakeholders....
11 Pages
(2750 words)
Essay
Duty to Promote the Success of the Company i.... "A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members"- this duty is set out in section 172 of the Act and is a new duty developed from one of the heads of the overriding principles of the fiduciary duties, i.... The Companies Bill (earlier popular as the company Law Reform Bill) is a major step towards extensive reform of UK company law....
10 Pages
(2500 words)
Essay
The new duty warrants action towards the success of the company.... This duty of the Directors is considered as the duty to act in good faith in the interests of the company.... From the paper "the company Law Review" it is clear that generally speaking, the Act on Auditors responsibility according to the reform states that the law on the person having the right to sue the auditors need not be changed.... This duty on the part of the directors is: the company Law Review considered the following major issues in their proposals restructuring those parts of company law most relevant to small businesses, making it easier for them to understand what they need to do....
9 Pages
(2250 words)
Coursework
In order to advise Alison Belfield (AB) we shall discuss the rights and duties of company directors and shareholders, the breach of these duties, consequences of breach and the rights of shareholders to prevent directors from causing any loss to the company due to negligence.... Duty not to benefit from third parties: Any benefits obtained in this way will have to be accounted for to the company even if the company benefits as well.... Based on AB's concerns regarding the activities of directors of CCA and the company operations the following facts have come to light....
10 Pages
(2500 words)
Essay
Presently the general duties that a director owes to the company were invariably established through case law rather than statute making it difficult for such duties to be comprehended and pressed for implementation.... From the paper "company Law Reform Bill" it is clear that the newly codified duties are carried in simple language and are interconnected at one place for better reference there is a large reliance on establishing case laws in their enunciation....
14 Pages
(3500 words)
Coursework
Potentially the most significant change and the one most likely to be the subject of claims against directors is that relating to the Duty to Promote the Success of the Company.... However, individual shareholders are afforded greater scope to enforce rights on behalf of the company (as discussed below).... The duties are owed by the director to the company itself, and not to individual shareholders or to other stakeholders such as employees or the wider community....
20 Pages
(5000 words)
Coursework
'In the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole' (s.... 172) The duty under Section 172 necessarily includes other considerations like 'the impact of the company's operations on the community and the environment' (s.... Also, the enumerated duties are not mere restatements of the common law rules such as for instance the duty for a director to act.... Under this duty, some issues may have to be considered....
11 Pages
(2750 words)
Essay