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

Wishes of members of parliament -disadvantages law, Wishes of members of pa...

Wishes of members of parliament -Disadvantages law: However acts of Parliament do not reflect the wishes of the people as voters although the wishes of the individuals that wh

Position in relation to the company - company secretary, Position in Relati...

Position in Relation to the Company: In 1882 Lord Esher in Barnett, Hoares & Co v South London Tramsways Co stated that: "A secretary is a mere servant; his position is tha

Form of alternative dispute resolution - element of the tort, Most legal co...

Most legal conflicts are settled outside of court, frequently using some sort of dispute resolution. There are times when a party cannot take a case to court until they have made a

V, Topic: "Imagine yourself in a situation of being encouraged to inflate ...

Topic: "Imagine yourself in a situation of being encouraged to inflate your expense account. Do you think your choice would be most affected by your individual moral development o

What is the meaning of flexible exchange rates, What is the Flexible Exchan...

What is the Flexible Exchange Rates With a fully flexible exchange rate adjustment toward the long run equilibrium occurs via a change in relative prices. This effect is shown

Regulations regarding experiments on animals, REGULATIONS REGARDING EXPERIM...

REGULATIONS REGARDING EXPERIMENTS ON ANIMALS : You may be aware that experiments on animals are performed in the laboratories of educational and research institutions. You should k

Explain ihl prohibitions, Important to observe that IHL prohibitions It...

Important to observe that IHL prohibitions It is important to  observe that  IHL prohibitions should be identified and followed as  their violations/breach may be considered as

Code of ethics for nurses, Case Study You have been asked to serve as a nur...

Case Study You have been asked to serve as a nursing representative on a government committee to look at funding for health care of undocumented individuals who work in the United

Theories of international antitrust coordination, Theories of international...

Theories of international antitrust coordination We have come across various policy coordinations and adjustments but still there are other spheres of affairs where direct poli

Necessaries - binding contracts, Necessaries - Binding Contracts Defin...

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

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