Fiduciary duties - company management, Business Law and Ethics

Assignment Help:

Fiduciary Duties:

The fiduciary duties of directors arising from their fiduciary relation to the company have been the subject of consideration in an enormous body of case law but the ratio decidendi of the cases can be reduced to two fundamental propositions:

(a) A director is not allowed to put himself in a position where his interest and duty conflict.

The application of this rule is illustrated by the following cases:

Aberdeen Rly Co v Blaikie Brothers (68). S.200(5) adopts this rule by providing that nothing in section 200(5) shall be taken to prejudice the operation of "any rule of law" restricting directors of a company from having any interest in contracts with the company".

S.200 requires a director who is in any way interested in a contract with the company to declare the nature of his interest at a board meeting. He must disclose the interest at the first board meeting at which the contract is to be discussed or, if he did not have an interest at that time, at the first board meeting after his interest arose.


Related Discussions:- Fiduciary duties - company management

Laws, #questiwhat are lawson..

#questiwhat are lawson..

Explain international criminal law, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The position in uk with the capital maintenance doctrine, QUESTION 1 Th...

QUESTION 1 The Bank of Mauritius has got various objects. It has therefore got various functions and powers in order to achieve the attainment of its objects. Discuss QUEST

Disadvantages of statute law, Disadvantages of Statute Law: Impositio...

Disadvantages of Statute Law: Imposition of law However some Acts are imposed on the people and reflect the views of the pundits or Executive in the ruling political part

Effects or consequences of illegality, Effects or Consequences of Illegalit...

Effects or Consequences of Illegality Misdemeanour Or Illegality renders a contract unenforceable.  However the contract creates no rights and imposes no obligations at the pa

Determine the agenda-setting process, Determine the agenda-setting process ...

Determine the agenda-setting process The "agenda" is the list of subjects or problems to which government officials, and people outside of government closely associated with t

Dishonour by non-acceptance, Dishonour by Non-Acceptance The drawee is...

Dishonour by Non-Acceptance The drawee is not prepared to meet the bill, such he will return it for the holder by means of a note to this effect, such the bill is then so said

Lost by company personnel, In a business context, there are thousands of le...

In a business context, there are thousands of legal claims that happen frequently in a company's course of operations. Frequently, the management team must come to together to veri

Illustrate the doctrine of judicial precedent, Illustrate the doctrine of j...

Illustrate the doctrine of judicial precedent? The doctrine of judicial precedent It states that higher court decision are binding on lower courts and like a result it i

Committee of inspection - winding up, Committee of Inspection:        ...

Committee of Inspection:                                       A committee of inspection is appointed in a compulsory liquidation and in a creditors' voluntary liquidation. It

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd