Restatement of the fundamental rule, Business Law and Ethics

Assignment Help:

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 consideration that human nature being what it is, there is danger, in such circumstances, of the person holding a fiduciary position being swayed by interest rather than by duty and thus prejudicing those whom he was bound to protect".

A director is not, unless otherwise expressly provided, entitled to make a profit: Boston Deep Sea Fishing Co v Ansell (71). This rule is essentially a restatement of the fundamental rule of the law of agency that an agent must not make a secret profit. The cases in company law are just examples of how a particular agent (the company director) committed a breach of his duties to a particular principal (the company).

In Percival v Wright (72) it was held that the directors owe their fiduciary duties to the company alone and not to the members. The decision raises a problem that has become known as "insider dealing".


Related Discussions:- Restatement of the fundamental rule

Explain about the stages model of policy outcome, Explain about the Stages ...

Explain about the Stages Model of Policy Outcome Dividing the policy process into discrete steps is also the analytic point of departure for much of the more recent work on pol

State the legal consequences of an wrongful act, State the legal consequenc...

State the legal consequences of an wrongful act Article 28, 30 and 31 state the legal consequences of an internationally wrongful act. They are as follows:- Article 28: Lega

Definitions of phoenix activity, phoenix activity involves "the evasion of ...

phoenix activity involves "the evasion of tax and other liabilities, such as employee entitlements, through the deliberate, systematic and sometimes cyclic liquidation of related c

What are the disadvantages of doctrine of judicial precedent, What are the ...

What are the disadvantages of doctrine of judicial precedent? Disadvantages of doctrine of judicial precedent: • Overtime here has been a huge number of cases, makes this ve

Discuss about the three streams, Discuss about the three streams There...

Discuss about the three streams There come times, however, when these three streams are joined. An event in the political stream, such as a change in administration, calls for

State article 22 of international law, State Article 22 of international la...

State Article 22 of international law Article 22 declares the premises of the mission as inviolable and agents of receiving State are not to enter them without the consent of

Determine the areas of open method of coordination, Determine the areas of ...

Determine the areas of open method of coordination The EU has indicated its intention to employ the OMC, but so far there is little evidence of progress. These areas include E

Articles of association, Articles of association: The memorandum of a ...

Articles of association: The memorandum of a company limited by shares or by guarantee must state that the liability of the company's members is limited. Hence the memorandum

Increasing the risk rating of building and construction, Q. Increasing the ...

Q. Increasing the risk rating of building and construction? Stakeholders indicated that there is a significant risk of phoenix activity in the building and construction industr

Discuss the principles of the substantive law, Munsami was driving his car ...

Munsami was driving his car registration number CB 713 from Nausori to wards Suva. He was travelling at 80kmph on 50kmph zone. At koronivia a taxi driven by Ram Raji of Koronivia,

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