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Directors duties

About two or three years ago, the issue of "directors duties" was a hot-topic.

This was because the Companies Act 2006 codified the principles previously laid out in case law and various pieces of legislations.  

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Directors duties

There are now seven general duties, which are as follows:

(a)   Duty to act within your powers

(b)   Duty to promote the success of the company

(c)   Duty to exercise independent judgment

(d)   Duty to exercise reasonable care, skill and diligence

(e)   Duty to avoid conflicts of interest

(f)    Duty not to accept benefits from third parties

(g)   Duty to declare an interest in a proposed transaction or arrangement

Many directors do not realise that when they stop being a director, some of these duties can continue; for instance, the duty to avoid conflicts of interest.  It, therefore, follows that where a director breaches his duties, it is the company that brings the action against the director.

As a commercial law firm we can call upon our commercial litigation solicitors or our employment lawyers to deal with advising companies who wish to bring a claim or directors who are being pursued.  Normally where a director is accused of breaching his duties, there can be many inter-tangled issues such as the dismissal of the director and the possible sale of his shares.

Please email info@ironmongercurtis.com or call 08452252635 for more information.

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For business law advice call 0845 225 2635