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Company Law Essay. S.741 (1) defines a director as including any person occupying the position of director by whatever name
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- Words:
- 1544
- Submitted:
- Tue Jun 20 2006
... Company Law Essay. S.741 (1) defines a director as including any person occupying the position of director by whatever name called. Directors owe a fiduciary duty that is the duty of loyalty to the companyi. This means that Directors must act bonafidely for the benefit of the company as a whole and for their proper purposes. Hugo, Camilla and Timothy are the directors of Rancid Ltd. They decide to allot new shares in order to reduce the risk of takeover by Butties Ltd and also to provide the company with capital which the company needs. Directors must act bonafidely for the benefit of the company and for no other collateral purpose such as benefit to themselves. In Regentcrest Ltd v Cohenii, it was made clear that the test was subjective that is it is what the directors honestly think is for the benefit of the company not what the court thinks.
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