Provision of fiduciary duties - company management, Business Law and Ethics

Provision of Fiduciary Duties - company management:

This provision is supplemented by Article 84 of Table A which provides that-

 i. The director shall not vote in respect of the contract. If he does vote, his vote shall not be counted; and

 ii. The director shall not be counted in the quorum present at the meeting.

1. Industrial Development Consultants Ltd v Cooley (69) in which the director became personally interested in a contract he had been assigned to negotiate for the company.

2. Cook v Deeks (70) in which some of the company's directors diverted to themselves a contract that was intended to be for the company. Since it was held that they had to surrender the benefit of the contract to the company. In law the benefit of the contract belonged to the company which the directors had formed for the purpose of obtaining the contract but in equity the contract belonged to the company for which it was intended.

In Bray v Ford Lord Herschell stated that the aforesaid rule is not "founded upon principles of morality" but is based on the consideration that human nature being what it is, there is danger, in such circumstances, of the person holding a fiduciary position being swayed by interest rather than by duty and thus prejudicing those whom he was bound to protect".

Posted Date: 1/12/2013 4:57:13 AM | Location : United States







Related Discussions:- Provision of fiduciary duties - company management, Assignment Help, Ask Question on Provision of fiduciary duties - company management, Get Answer, Expert's Help, Provision of fiduciary duties - company management Discussions

Write discussion on Provision of fiduciary duties - company management
Your posts are moderated
Related Questions
state the date on which the act came into force

Assignment of Share in Partnership Whereas as has been stated, never new partner may be bring in without the consent of all other partners as well like accordingly no partner

Case Study Cathy's septic tank at her house was old and it suddenly stopped  working.  On 9 June 2008 she called Dave, the owner of Septix Pty Ltd (-Septix?), to urgently give

Ejusdem generis rule: Therefore this rule states whereas simple words in an Act obeyed particular words, the general words are to be made as being limited to the persons or th

As you think about the rights of workers enhanced by anti-discrimination laws, have society and organizations become more tolerant and competitive due to less discrimination in the

The  defendants, while sympathetic, may believe that the ultimate responsibility of a child's safety and welfare belongs to the parent themselves. To the extent that the parents we

Collecting Banker Furthermore a collecting banker is protected through the following provisions: like; (i)Bills of Exchange or Swap Act.  with S.82 (1) provides such a ban

Discuss the importance of Media Media are important to agenda setting in two general ways: First by constructing and conveying simplified and often symbolic understandings of p

What is meaning of Relative Price Effects This final linkage occurs when there is free exchange rate between countries, which means the exchange rate is allowed to appreciate o

Representations Regarding Character or Credit Since statements relating to a person's credit-worthiness will only be actionable whether made in pursuance of a contract that wa