General duties of directors

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  • Created by: mellon
  • Created on: 28-04-14 16:50
Who is the directors' duty to?
The company not the shareholders
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What cases say that the duty is to the company?
Dawson v Coats Paton, Percival v Wright
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Is there a duty to the creditors?
Yes s172
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What duty is there to employees?
s172 - power to make provision for them on cessation or transfer of business
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What duty is there in reference to powers?
Duty to act within powers
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Must the director work for the best interests of the company?
Must consider factors including likely long term effects, employees, business relationships, community and environmental impact
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What happened in People & Planet
PP argued that there was a breach of s172 as RBS lent money to environmentally unsound company. BUT success of the company was an overriding factor
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Other cards in this set

Card 2

Front

What cases say that the duty is to the company?

Back

Dawson v Coats Paton, Percival v Wright

Card 3

Front

Is there a duty to the creditors?

Back

Preview of the front of card 3

Card 4

Front

What duty is there to employees?

Back

Preview of the front of card 4

Card 5

Front

What duty is there in reference to powers?

Back

Preview of the front of card 5
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