Discuss the duties of directors, both statutory i.e in accordance with the Company Act and Common...

Discuss the duties of directors, both statutory i.e in accordance with the Company Act and Common law- following the principles of case law.(10 Marks)

Expert Solution

Duties of directors in accordance with the Company Act are:

Duty to act within powers: The directors are obliged to work in accordance with the article of the company and not beyond that.
Duty to act in good faith: directs must work to promote the success of the company and for the benefits of its members.
Duty to act in the best interest: the director must act for the good of its employees, management, suppliers, customers, and many more stakeholders.

Duties of directors in accordance with the Common law are:

Duty to exercise discretion: It means that they should be independent and unbiased in managing the company.
Duty to exercise power for proper purposes: They must avoid their power for improper uses and benefits as it will be considered as invalid.
Duty to avoid conflict of interest: They are obliged not to accept and opportunity that is meant for personal benefit at the cost of the company's expense.

keosha answered 1 year ago

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