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

Convening of general meetings, Convening of General Meetings: General ...

Convening of General Meetings: General meetings are normally convened by the Board of Directors pursuant, to the relevant provision of the company's articles, such as Table A,

The relationship(s) that a bank shares with its customers, QUESTION 1 B...

QUESTION 1 Barclays Bank in Mauritius has interviewed various candidates for the post of Chief Executive Officer. Its HR department has requested you to provide them with some

Tort law assignment help: causation, The second factor which is necessary f...

The second factor which is necessary for a claimant to impose claim on other person is to have a cause for the action taken by him. Hence it is important to have a proper link betw

A contract of employment or a procedure agreement, QUESTION 1 Write in ...

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

Unsecured ordinary debts, UNSECURED ORDINARY DEBTS: A secured creditor...

UNSECURED ORDINARY DEBTS: A secured creditor obtains payment (to the extent that his security is adequate i.e. if it exceeds in value the amount owing to him) because he has a

Restatement of the fundamental rule, Restatement of the fundamental rule: ...

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 consideratio

Air Bus case study, Had France adopted OECD convention on bribery ahead of ...

Had France adopted OECD convention on bribery ahead of these transactions would the firm''s behavior have differed?why?

Function of the registered office, Function of the Registered Office: ...

Function of the Registered Office:                          Section 107(1) provides that a company shall, as from the day on which it begins to carry on business or as from th

Explain united nations commission on india and pakistan, Explain United Nat...

Explain United Nations Commission on India and Pakistan One such resolution dated 20th  January 1948 created United Nations Commission on India and Pakistan (UNCIP), which was

Hire-purchase law, Hire-Purchase Law A person who wants to buy goods t...

Hire-Purchase Law A person who wants to buy goods through does not have the like "money consideration" prescribed through the Sale of Goods Act like their price may enter in 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