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
Registration:            Whether the aforesaid documents are correctly prepared in accordance with the provisions of the Companies Act they are registered, the registrar grant

Necessaries - Binding Contracts Definition of 'Necessaries' cleared by S. 4(2) to the Sale of Goods Act like "goods appropriate for the condition in life of that infant or min

State in brief aboput the Monetary Effects Besides real income effects there will also be monetary effects if nations seek to intervene in foreign exchange markets which govern

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who necessarily takes the initiative in considering the contract

Define the outer boundaries of policy choice The agenda proper tends to be set by political forces and actors located outside of the researcher/analyst community. Elected polit

Registered Companies: A registered company is formed by registration under the Companies Act. It is this type of company that people usually have in mind when they talk of "a

Undischarged Bankrupts: S.188 provides that if an undischarged bankrupt acts as director of any company without leave of the court he shall be liable to imprisonment for a ter

Stare Decisis and Its Application by US Courts However there is so far no case decided through the US Court of Appeal regarding the application of "stare Decisis" through US C

State about the Security Council of United Nations? The Security Council: The Security Council has main responsibility for the preservation of international peace and sec

QUESTION (a) List eight main objectives of tax treaties (b) Explain carefully how cases of dual residence for both individuals and companies would be resolved by the applica