Company directors Duties

 Directors Responsibilities Essay

Fiduciary Duties of Directors

1)Duty to act in good faith in the interests with the company In Re Watts & Meters Roith Limited [1967] you All IM OR HER 427, the controlling overseer of a company had provided many years solutions without having a service contract. Having been then presented a service contract providing to get payment of the pension to his widow if he died when still a director. He was already in poor health at this time and this individual died two months later. The pension was paid for many years and then the company went into liquidation. The director's executors devote a assert in the liquidation for the capitalized worth of the monthly pension. The liquidator rejected what he claims. It was placed that the state could not become supported. The pension was not for the benefit of the company, nor incidental towards the carrying about of the industry’s business.

2)Duty to exercise powers to get proper purpose

In Howard Smith Ltd v Ampol Petroleum Ltd [1974] AC821, Ampol Petroleum and Bulkships Ltd jointly owned 55% of the released share capital of Ur W Callier (Holdings) Limited. Ampol and Howard Jones Ltd had been making rivalling takeover prices for bids for Burns. The owners of Burns favored Howard Smith's wager, which was higher, but there was clearly no potential customer of this wager succeeding since Ampol and Bulkships will not have recognized Howard Smith's offer. The evidence showed that Miller is at need of further capital. The company directors of Callier resolved to allot new shares to Howard Johnson for two purposes; first, to raise the capital required, and second to reduce the holdings of Ampol and Bulkships to enable Howard Smith's bid succeed. Ampol challenged the validity of the end. It was held that the end was not valid. Its dominating purpose was going to alter the stability of electric power, and this had not been the purpose that the director's power to allocate shares had been given.

3)Duty to stop conflicts of duty and interest

In Regal (Hastings) Ltd sixth is v Gulliver [1942] 1 Almost all ER 378, Regal held one theatre and planned to buy two others promote...

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