Nobody downloaded yet

The Powers of the Company Board of Directors Under English Law - Research Paper Example

Comments (0) Cite this document
Summary
The paper describes the Board of Directors of the corporation. By virtue of its position in the company, the Board of Directors has direct control over the affairs of the company. It has the power to decide what to do and what not to do for the good of the company and its owners…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
The Powers of the Company Board of Directors Under English Law
Read TextPreview

Extract of sample "The Powers of the Company Board of Directors Under English Law"

Download file to see previous pages According to section 171 of the Companies Act 2006, “A director of a company must (a) act in accordance with the company’s constitution, and (b) only exercise powers for the purposes for which they are conferred.” In other words, the Board of Directors may only exercise its powers for a proper purpose at all times. According to the court in the case of Harlowe’s Nominees Pty v Woodside, proper purpose, in this case, means legal and moral intentions that are beneficial to the company. In light of this definition, the Board of Directors is prohibited from using its powers for unlawful or immoral purposes even their intention is to promote the interest of the company. However, the proper purpose provision of the law is not set in stone and it admits exceptions. There are certain cases when the otherwise improper acts of the Board of Directors may be considered as acts of the corporation when these acts are ratified by the members. The ratification of the acts of the directors can make the otherwise improper act proper. A clear example of this situation can be seen in the case of Howard Smith Ltd. v Ampol Ltd. According to the decision of the court in this case, where the exercise of the powers of the Board of Directors is done to protect the best interest of the company, the act may be ratified to become an official act of the company. Note that in this case, in order to defeat the majority shareholder and ensure the financial stability of the business, the Directors issued a large number of shares to the public. Such act of the Directors was considered by the court as within what is contemplated by the Companies Act 2006. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Powers of the Company Board of Directors Under English Law Research Paper”, n.d.)
The Powers of the Company Board of Directors Under English Law Research Paper. Retrieved from https://studentshare.org/law/1562493-law-essay
(The Powers of the Company Board of Directors Under English Law Research Paper)
The Powers of the Company Board of Directors Under English Law Research Paper. https://studentshare.org/law/1562493-law-essay.
“The Powers of the Company Board of Directors Under English Law Research Paper”, n.d. https://studentshare.org/law/1562493-law-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Powers of the Company Board of Directors Under English Law

Uk Company Law Directors Duties

...and the shareholders. The above mentioned laws require the director of a company to be the regulator within the company who has power to function and make decisions on behalf of the company under the authority entrusted to him under the constitution of the company, and the power delegated by the shareholders to the director of the company to run the day-to-day affairs of the company; the directors have the authority to make decisions and should limit their authority within the limits set by the...
10 Pages(2500 words)Essay

Corp Law Assignment. Directors Duties / Remedies / Removal of Board

...against him in deducing that the action he took into renting expensive premises was out of consciousness. He would be approved of being liable to the repercussions of violating the law. Therefore, the court would hold Dodgy responsible and to face the consequences of going against the law. The incorporation of other similar cases to Dodgy’s case might foster an insight in the case to enable for a broader perspective of viewing the case. For instance, ASIC v Rich, ASIC sued the Tel Ltd of failure to maintain the information on the company’s financial status. The company’s non-executive director claimed of not possessing the similar powers...
4 Pages(1000 words)Essay

Law - Directors Duties

...responsibility, traditional common law notions had to be revised with a codification by the Companies Act Review. The codification of the Companies Act focused on 9 main sections, which define the duties that the directors owe to their companies. The first codification is section 171, which requires the directors to act within their powers in association with the company. Section 172 sets out the duty of the directors to promote the success of the company in a way that benefits the shareholders of the company. Section 173 requires the...
4 Pages(1000 words)Essay

Report to the Board of Directors - 3M Company

...? Report to the Board of Directors - 3M Company Contents Executive summary to Board of Directors 3 Evaluation of selected measurement model PPE valuation and recognition 4 Evaluation of selected measurement model 2: Differences permitted in Asset Impairment methods and accounting treatment 5 Discussion of influence of institutional context on measurement choices 6 6 Discussion of influence of social context on measurement choices 7 Recommendations to Board of Directors 8 References 9 Executive summary to Board of Directors The financial reporting on PPE and asset impairment of 3M Company has been presented below. The non-current assets that are expected to produce benefits for more than one accounting period have been classified... on...
6 Pages(1500 words)Coursework

Directors Confidential Board Meeting

...company. 11:00 AM Tea break 11:15 AM Overview of the current business scenario by a Senior executive 12:00 PM Discussion on Merger and Acquisition. 1:00 PM Lunch 1:45 PM Business prospects after the take over of the competitor company. 3:30 PM High tea 3:45 PM Discussion on Improvising on Business segments 4:30 PM A closer look at marketing activities. 5:30 PM Conclusion and Thanks giving 6:00 PM Pick up from Hotel Marriott to Hotel Hilton 6:30 PM Reach Hotel Hilton & drop back to Canary Wharf Hotel after dinner. Next day 7:00 AM Pick up from Canary Wharf area hotel and drop them at London city airport by Limousines 8:00 AM Flight from the London city airport 4.Event Budget for...
6 Pages(1500 words)Assignment

Company Law - English law

...and not to shareholders or creditors, present or future.15 However there have been statutory inroads on the common law presumption under the Insolvency Act (ss212-214, ss238-240) and Schedule 1 of the Companies Directors Disqualification Act 1986. The directors' powers to dispose of company assets and any procedural requirements will be detailed in the Articles. At common law directors must not use their powers for an improper purpose; this is assessed objectively16. The directors appear to have been motivated to ensure LJM Limited obtained valuable...
10 Pages(2500 words)Case Study

UK Company Law Shareholders and Directors

...Order 156623. SHAREHOLDERS AND DIRECTORS INTRODUCTION The directors of a company are entitled to exercise all powers and to do all such duties and things as the company is authorized to exercise or do, except those that are required by the companies Act or done by the company in a General meeting. In enjoying their powers and duties the Directors are subject to their provision of the Act and any regulations made by the company in General meeting. The board of directors of a company are entitles to exercise all such...
8 Pages(2000 words)Essay

Event Planning: Directors Confidential Board Meeting

...Event Planning Directors Confidential Board Meeting November 20 TABLE OF CONTENTS Timeline & Tasks……………………………………………………………………………... 2 2 Event function sheet ………………………………………………………………………….. 3 3 Check list………………………………………………………………………………………. 4 3.1 Reception Area.......................................................................................................................... 4 3.2 Audio visual team.............……………………………………………………….................... 4 3.3 Catering…………………………………………………………….. ……………………….. 4 3.4 Transport Management…......................................................................................................... 4 4 Event budget………. …………………………………………………………………………. 5 5 Event evaluation... at the Hotel reception 8:15...
6 Pages(1500 words)Essay

The Role of Company Directors

...they are directly responsible or not (QBE, 2002). The conventional view of the fiduciary duties of a company’s board of directors progressed from common law perspective is twofold: the duty of loyalty and the duty of care. Black (2001) has further expanded this to include two additional elementary duties that are quite relevant in contemporary organisational structure: duty of disclosure and the duty of extra care [See summary Figure 1]. Figure1 The first two duties can be categorised as responsibilities to the shareholders while the latter can be classified as responsibility to third parties. Nonetheless injury to third parties by company ‘agents’...
12 Pages(3000 words)Essay

Board of directors

...Board of Directors Capital Management ity refers to an independent government body responsible for the regulation of capital markets in a given country. The Board of Directors of Capital Management Authority, in Kuwait, comprises of individuals who are appointed by the company shareholders to jointly oversee the affairs of the company. Their duties include recruiting the manager, establishing policies, protection of the company’s assets and investments. Since the establishment of Kuwait Market Authority in 2010, several challenges have been felt, as put forward by Kachel and his co-authors. Some of these...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic The Powers of the Company Board of Directors Under English Law for FREE!

Contact Us