Restatement of the fundamental rule, Business Law and Ethics

Restatement of the fundamental rule:

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".

A director is not, unless otherwise expressly provided, entitled to make a profit: Boston Deep Sea Fishing Co v Ansell (71). This rule is essentially a restatement of the fundamental rule of the law of agency that an agent must not make a secret profit. The cases in company law are just examples of how a particular agent (the company director) committed a breach of his duties to a particular principal (the company).

In Percival v Wright (72) it was held that the directors owe their fiduciary duties to the company alone and not to the members. The decision raises a problem that has become known as "insider dealing".

Posted Date: 1/12/2013 4:59:18 AM | Location : United States

Related Discussions:- Restatement of the fundamental rule, Assignment Help, Ask Question on Restatement of the fundamental rule, Get Answer, Expert's Help, Restatement of the fundamental rule Discussions

Write discussion on Restatement of the fundamental rule
Your posts are moderated
Related Questions
Purchase Of Own Shares: Another possible way in which a company's paid-up capital may leave the company other than in the ordinary course of the company's business would be if

State Article1of Universal Declaration of Human Rights Article 1: 'All human beings are born free and equal in respect and rights. They are endowed with reason and conscience

Define the non-state actors Besides the efforts of ILC in defining a link between the state responsibility and non-state actors, some UNSC resolutions have tried to define the

a) Determine which forum(s) Purchaser could file her lawsuit in.   Personal Jurisdiction, b)  If Purchaser were to file in CA, could she formed specific jurisdiction over you

Define the term - policy elites A community of policy activists having somehow, a dominant position in policy process, called policy elites. They are guided by a substantive pro

Revival of a Dissolved Company: Liquidation leads on to dissolution of the company.  The court may, however, within the ensuing two years order that dissolution be rescinded a

CASUAL VACANCIES: By S.159 (6) "The directors may fill any casual vacancy in th office of auditor, so further any there such vacancy maintaining the surviving or continuing au

Remedies of the Ultra Vires Lender:                          In Sinclair v Brougham (26) the House of Lords explained that no action or suit lies at law or in equity to recove

Publication of Bills in the England Gazette: Such there order 98 which offers that no Bill shall be intract unless it has been published in the Gazette and a certain time of f

WITH REFERENCE TO THE STANDARD FORM CONTRACT (in isolation) 1. Explain the legal issue that clause 1 of the standard form contract is addressing and what it is aiming to achiev