Directorship - company management, Business Law and Ethics

Directorship - company management:

A directorship is not a professional job with a legally prescribed qualification. In the circumstances, anybody (even a six-months-old baby) can become a director. All that the law can expect him to do is to serve the company honestly and to the best of his ability. In RE: MARQUIS OF BUTE'S CASE the director became the director at the age of six months by inheriting the office from his father who had died.

 A director is not bound to give continuous attention to the affairs of his company. His duties are of an intermittent nature to be performed at periodical board meetings, and hence there at meetings of any committee of the board upon which he happens to be placed. He is not, conversely bound to attend all such meetings, though he ought to attend at whatever time, in the circumstances, he is reasonably able to do so.

In RE MARQUIS OF BUTE'S CASE a director who had attended only one board meeting in thirty eight years was exonerated from liability for alleged negligence on the ground that "neglect or omission to attend meetings is not here in my thought, the several thing as neglect or omission of a duty which ought to be performed at those meetings" (per Stirling, J.)

Posted Date: 1/12/2013 4:53:34 AM | Location : United States

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