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Directors and their Duties after the Companies Act
The duties that a director has have developed over many years through case law.
The Companies Act 2006 has now introduced Statutory Duties for Directors. There are seven new duties, with the final three of the seven coming into force on 1 October 2008.
There are seven general duties of a Director under the 2006 Act:
- To act within his powers
- To promote the success of the company for the benefit of its members as a whole
- To exercise independent judgment
- To exercise reasonable care, skill and diligence
- To avoid conflicts of interests
- Not to accept benefits from third parties
- To declare to the other directors any interest in a proposed transaction or arrangement with the company
"It is essential that directors are aware of the changes in the law in this area, and the affect on their day-to-day activities. For example, there are mandatory factors for directors to have regard to when considering their duty to promote the success of the Company. Bradshaw Hollingsworth can provide that help."
If you would like more information or to discuss the new director’s duties, please contact Greg Hollingsworth at Bradshaw Hollingsworth on 0116 204 2500 or by email at greg.hollingsworth@bhlaw.co.uk
Bradshaw Hollingsworth provide specialist legal advice in the areas of Employment Law, Litigation, Commercial, Insolvency, Debt Recovery, Wills & Probate and Property, including residential conveyancing, house sales, house purchases and re-mortgages. For more information about our services please contact Greg Hollingsworth of Bradshaw Hollingsworth Solicitors, 19 New Walk, Leicester on 0116 204 2500 or by email at greg.hollingsworth@bhlaw.co.uk.
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