claw2201 hd notes.docx

Directors Duties:1. Sources of Director’s Duties:General Law1. Fiduciary Duties: s185 Interaction of sections 180 to 184 with other laws etc.(a) have effect in addition to, and not in derogation of, any rule of law relating to the duty or liability of a person because of their office or employment in relation to a corporation; and(b) do not prevent the commencement of civil proceedings for a breach of a duty or in respect of a liability referred to in paragraph (a).2. Principle and rules (derived from case law) of s9:‘General law ‘ means the principles and rules of the common law and equity.Statute:Restatement /modification of the general lawDuties and obligations in addition to the general law (s185)WHO OWES DIRECTORS DUTIES?General law duties: DirectorsStatutory duties:Ss 180+181: Directors/ officersSs 182+183 Directors/ officers/ employeesS 588G: Directors S9 extended definitions:Alternate director (A director of a company may, with the other directors approval, appoint an individual to act as an alternate to exercise some or all of the directors powers for a specified period.)De facto director/ officer (有的人在公司的职位不是经理，但是他行使的权利是属于经理的权利范围的话，这种人就叫做de facto director，在追究民事或刑事责任的时候，de facto director虽然职位上不是经理，但也要按照经理的职位来进行处罚。)Shadow director/ officer (有的人在公司的职位不是经理，但是他的言行有一定的影响力，而当这种影响力影响到公司的经理行使他们的权利的时候，这种人就叫做shadow director；在追究民事或刑事责任的时候，shadow director虽然职位上不是公司的经理，但也要按照经理的职位来进行处罚。)2. Categories of duties:Duties of loyalty and good faith:General Law fiduciary duty:Directors must act ‘bona fide’ in best interests of company: GREENHALGH v ARDERNE CINEMAS1. Good faith=bona fide (good trust)=loyal adherence to duty with honorable intentions: BRISTOL WEST BUILDING SOCIETY v MOTHEW2. Best interest of the company---the company=company as wholeCompany as whole =best interests of shareholders as collective group: GREENHALGH v ARDERNE CINEMAS3. Interests of employees? No. PARKE v DAILY NEWS4. Interests of creditors? Yes –when company is in an insolvency context. WALKER v WIMBOR