Directors liabilities and duties - Essay Example

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Summary

Until the amendments are made to the Companies Act in the year 2006 and brought into operation the duties of the board of directors of the companies are developed on the basis of decided case laws. In order to provide greater comprehension to the role of directors the liabilities and duties of directors are set out it the statute subject to some changes warranted…

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Subject: Miscellaneous
Type: Essay
Level: Undergraduate
Pages: 40 (10000 words)
Downloads: 2
Author: stoltenberglais

Extract of sample "Directors liabilities and duties"

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The liability of the directors for statements in reports has also been covered in the new regime. The objective of this study is to bring out the salient aspects of liabilities and duties of the directors as set out in the current regime of Company Law legislation. The objective of this chapter is to present an overview of the topic chosen for study as well as the aims and objectives of the research. The chapter also details the structure of the paper to have a comprehensive understanding of the text of the report.

However it is not possible to limit the functions of the company only to the above as there are number of other areas to which the scope and application of the company law legislation can extend. Moreover these functions as well as any other functions have associated costs and benefits. Hence it can be stated that the role of the company law is to maximize the benefits while minimizing the costs of implementation of the various provisions. It is also necessary that these key policy choices are examined within the context of the relationships that might be formulated between the various parties with which the company law legislation deals with.

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