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- 6 Marks
BCL – Nov 2018 – L1 – Q3b – Company Law
List three civil liabilities that can be brought against a director for breaching their duty.
Question
As part of the duty, a director of a company stands in a fiduciary relationship towards the company and shall observe the utmost good faith towards the company in a transaction with it or on its behalf. He or she shall act at all times in what the director believes to be the best interests of the company as a whole so as to preserve its assets, further its business, and promote the purposes for which it was formed, and in a manner that a faithful, diligent, careful, and skillful director would act in the circumstances. Besides, a director is not to use for his or her own advantage the money or property of the company or confidential information or special knowledge obtained in his or her capacity.
Required:
List THREE (3) civil liabilities that are to be brought against a director who commits a breach of duty and violates the rules regarding conflict of interest.
(6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Breach of Duty, Civil Liabilities, Company Law, Corporate Governance, Directors' Duties
- Level: Level 1
- Topic: Contract Law
- Series: NOV 2018
Report an error
- 6 Marks
BCL – Nov 2018 – L1 – Q3b – Company Law
List three civil liabilities that can be brought against a director for breaching their duty.
Question
As part of the duty, a director of a company stands in a fiduciary relationship towards the company and shall observe the utmost good faith towards the company in a transaction with it or on its behalf. He or she shall act at all times in what the director believes to be the best interests of the company as a whole so as to preserve its assets, further its business, and promote the purposes for which it was formed, and in a manner that a faithful, diligent, careful, and skillful director would act in the circumstances. Besides, a director is not to use for his or her own advantage the money or property of the company or confidential information or special knowledge obtained in his or her capacity.
Required:
List THREE (3) civil liabilities that are to be brought against a director who commits a breach of duty and violates the rules regarding conflict of interest.
(6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Breach of Duty, Civil Liabilities, Company Law, Corporate Governance, Directors' Duties
- Level: Level 1
- Topic: Contract Law
- Series: NOV 2018
Report an error