DIRECTORS’ DUTIES
Chapter 15 of the Subject Guide
,INTRODUCTION
, INTRODUCTION
This chapter being rather complex, will set out the objectives
that are to be achieved:
i. Considering the duties of directors and Part 10 of the CA 2006
which sets out the equitable and common law duties by way of
statutory restatement.
ii. Other statutory duties of directors aimed at addressing specific
types of abuses.
iii. Scope of the Courts discretion to relieve directors from liability
for breaches of duty.
, INTRODUCTION
Legislative statement of director duties was recommended for three principal
reasons:
i. To provide greater clarity on what is expected of directors and to make the law
more accessible
ii. To enable defects in the common law to be corrected in important areas where
it no longer corresponds to accepted norms of modern business practice; and
iii. To make development of the law in this area more predictable.
The government accepted these proposals by the CLRSG and it is clear that the
approach taken by the Law Commissions and the CLRSG shaped the framing of
Part 10 of the CA 2006.
Chapter 15 of the Subject Guide
,INTRODUCTION
, INTRODUCTION
This chapter being rather complex, will set out the objectives
that are to be achieved:
i. Considering the duties of directors and Part 10 of the CA 2006
which sets out the equitable and common law duties by way of
statutory restatement.
ii. Other statutory duties of directors aimed at addressing specific
types of abuses.
iii. Scope of the Courts discretion to relieve directors from liability
for breaches of duty.
, INTRODUCTION
Legislative statement of director duties was recommended for three principal
reasons:
i. To provide greater clarity on what is expected of directors and to make the law
more accessible
ii. To enable defects in the common law to be corrected in important areas where
it no longer corresponds to accepted norms of modern business practice; and
iii. To make development of the law in this area more predictable.
The government accepted these proposals by the CLRSG and it is clear that the
approach taken by the Law Commissions and the CLRSG shaped the framing of
Part 10 of the CA 2006.
