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

Capacity to become a partner - partnership law, Capacity to Become a Partne...

Capacity to Become a Partner - Partnership Law Competence to enter in partnership is co-extensive about capacity to contract.  Actually an infant may enter in a contract eithe

State the definition of equilibrium, State the Definition of equilibrium ...

State the Definition of equilibrium The approach of equilibrium refinements aims at strengthening the definition of equilibrium itself in order to purge others out as possible

Business organisation, what are the business organisation of objecetive

what are the business organisation of objecetive

Assignment of share in partnership, Assignment of Share in Partnership ...

Assignment of Share in Partnership Whereas as has been stated, never new partner may be bring in without the consent of all other partners as well like accordingly no partner

Discuss corruption is the cancer eating, QUESTION 1 Corruption is the c...

QUESTION 1 Corruption is the cancer eating at the heart of good governance of public institutions. Discuss QUESTION 2 The Prevention of Corruption Act 2002 is dangerous

Explain important part in the international law, Explain important part in ...

Explain important part in the international law The Use of force is a controversial and complicated issue at international level. The United Nations (UN) Charter declared it un

Laws and regulations, Here, we have outlined the utility of National Buildi...

Here, we have outlined the utility of National Building Code. We have explained the main features of Factories Act. Some of the provisions of Electricity Act and Rules which are re

Show the cross agency actions, Q. Show the Cross agency actions ? As al...

Q. Show the Cross agency actions ? As already described, the ASIC, ATO and FWO all have responsibilities in investigating and monitoring elements of phoenix activity. This mean

Reserve capital, RESERVE CAPITAL: The reserve capital is defined by S....

RESERVE CAPITAL: The reserve capital is defined by S.62 of the Act as the portion of the issued but uncalled capital of a limited company which the company's members, by speci

Explain the role of ethics in entrepreneurship, 1. Explain the role of ‘Eth...

1. Explain the role of ‘Ethics' in Entrepreneurship. 2. What do you understand by ‘Public Limited Company'? 3. Difference between ‘Intrapreneur' & ‘Intrepreneur'. 4. What is ‘Copyr

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