Director Duties Flashcards
Who can take action under common law
Only the company can purse action for breach of duty
who can take action under the act
shareholders as duties are owed to both the shareholders and the company
common law duties of directors
To act in good faith
Not to exercise powers for improper use
To exercise care and skill reasonable expected of that director
To avoid conflicts of interest with the company
common law standards for directors and case
Re City Equitable Fire Insurance Co:
Only expected to show a reasonable level of skill based on their knowledge etc.
Not obliged to give continuous attention to the affairs of the company
Can delegate tasks to officials
CA duties of directors
encourage efficient and responsible mgmt, allowing directors a wide discretion, providing protection for shareholders and creditors against the abuse of mgmt power
