General duties of directors 0.0 / 5 ? LawBusiness EntitiesUniversityOther Created by: mellonCreated on: 28-04-14 16:50 Who is the directors' duty to? The company not the shareholders 1 of 7 What cases say that the duty is to the company? Dawson v Coats Paton, Percival v Wright 2 of 7 Is there a duty to the creditors? Yes s172 3 of 7 What duty is there to employees? s172 - power to make provision for them on cessation or transfer of business 4 of 7 What duty is there in reference to powers? Duty to act within powers 5 of 7 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 6 of 7 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 7 of 7
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