Impose a duty on directors, Business Law and Ethics

Assignment Help:

Impose a duty on directors:

A company is, however, free to impose a duty on its directors to attend board meetings within a certain period of time and to prescribe the consequences of a breach of the duty. See, for example, Table A, Article 88(f).

In respect of all duties which having regard to the exigencies of business so, and the articles of association there may properly be left to several other official, a director is, in the absence of grounds for suspicion, warranted in trusting that official to perform such duties honestly.

Whether a director is to be made liable then it can only be on the basis of his personal negligence, and it is not negligence to delegate some responsibilities to officials or employees of the company whose previous conduct has given no grounds for distrust or suspicion.

In DOVEY v CORY a director was held not liable for negligence merely because he had failed to verify false information regarding the company's accounts which he had been given by the company's manager and managing director. The court stated:

"Business cannot be carried on upon principles of distrust. Men in responsible positions must be trusted by those above them, with those below them there through until there is reason to distrust them. Because we agree that care and prudence do not involve distrust."


Related Discussions:- Impose a duty on directors

Who uses private welfare, QUESTION 1 Why is the United States, which is ...

QUESTION 1 Why is the United States, which is a leader country in so many areas, so far behind in the provision of social welfare benefits? QUESTION 2 (a) Who uses private

Give detail explanation of credibility problem, Give detail explanation of ...

Give detail explanation of Credibility problem There are indications that such credibility problem stems from a tension between the goal of encouraging innovation and investme

Explain negotiation tactics, Question 1: Explain in full details the va...

Question 1: Explain in full details the various negotiation tactics and the ethical criteria that you, as a negotiator, may use to achieve your projected goals and bring positi

Differences between registered companies and partnerships, Differences betw...

Differences between registered companies and partnerships: The basic differences between registered companies and partnerships are as follows: (a) Formation Registration

Define the term - authoritative government decision, Define the term - auth...

Define the term - authoritative government decision We can sum up by way of saying that the intent to implement a policy is not the same thing as a real policy. Failure to impl

State about the median voter theorem, State about the Median Voter Theorem ...

State about the Median Voter Theorem Percentage of vote necessary for a proposal to be adopted, remember Median Voter Theorem, will affect the difficult of adopting a proposal,

What is the meaning of pareto inefficient outcomes, What is the meaning of ...

What is the meaning of Pareto inefficient outcomes Policy coordination is, therefore, designed to avoid Pareto inefficient outcomes. In absence of a supranational authority tha

Explain the term recognition, Explain the term RECOGNITION RECOGNITION...

Explain the term RECOGNITION RECOGNITION The term Recognition under international law means and involves the acceptance or acknowledgment of the existence by a State of an

Non-payment of cheques, Non-Payment of Cheques A banker's authority ab...

Non-Payment of Cheques A banker's authority about pay a cheque that will be determined or that terminated through: like; (a) Countermand of payment, below s.75 (a). the Act

Describe the function and structure of iaea, Describe the function and stru...

Describe the function and structure of IAEA The function and structure of IAEA is defined in IAEA statute. IAEA has three main bodies: Board of Governors, General Conference a

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