04 Limited companies: part 2

Question 1

How many directors are required?

Answer 1

Private company = at least 1 director
Public company = at least 2 directors

Question 2

What resolutions are required for the appointment of non-executive and executive directors?

Answer 2

Non-executive = BR or OR (MA17)
Executive = BR (MA19)

Question 3

What are the directors’ duties?

Answer 3

Duty to act within powers (s171)

Duty to promote the success of the company (s172)

Duty to exercise independent judgment
(s173)

Duty to exercise reasonable care, skill and diligence (s174)

Duty to avoid conflicts of interest (s175)

Duty not to accept benefits from third parties (s176)

Duty to declare interest in proposed transaction or arrangement (s177)