Company Law

In Re Lands Allotment and JJ Harrison (Properties ) Ltd v Harrision , confirming that a Director holds the proceeds made from a breach of fiducial commerce as constructive trustee . A ` dression characterizationion entered into by a Director is void commensurate at the companyNow it needs to discuss Companies encounter 2006 . One of the bone gist objectives of the Companies move 2006 was the change of the rights of nonage shareholders and to make directors more susceptible to the shareholders they represent . However , if they fail in their duties , the introduction of stimulate rights for a shareholder at present means that they can confine definite action against them . The Act makes a train of significant changes to shareholder rights , which thread through the different areas that the Act covers . Now the Comp anies impart be allowed to check on whether or not the beneficial owner wishes to retain information rights on an annual basis .

Any failure to respond to such(prenominal) a check within 28 days go forth mean that the company can assume that the rights have lapsedFor the foregoing time , all the duties owed by directors to their company have been uncompromising out in statute , in Part 10 (ss .170-177 ) of the new Act The general duties are responsibility to act within powers , responsibleness to promote the success of the company , indebtedness to exercise reasonable care , skill and diligence , duty to ex ercise independent judgment , duty to avoid ! conflicts of involvement , duty to declare interest in proposed transaction or agreement , and duty not to accept benefits from third benefits etc if they do not follow this section nonage shareholders can make out action against directors . So it can be said , that the rights of minority shareholders have been improved by the enactment of the Companies Act 2006Before depict on to discuss Directors Duty it...If you want to get a luxuriant essay, order it on our website: OrderCustomPaper.com

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