2007
October 1st
Under the Companies Act 1985 company directors had a number of fiduciary duties in relation to their conduct towards the company. Under the Companies Act 2006 those fiduciary duties have now been incorporated into statute. Company directors are now subject to the following duties:
(a) Duty to act within the powers set out in the memorandum and articles of association
(b) Duty to promote the success of the company
(c) Duty to exercise independent judgement
(d) Duty to exercise reasonable care, skill and diligence
(e) Duty to avoid conflicts of interest – please note that this duty does not come into force until 1st October 2008
(f) Duty not to accept benefits from third parties
(g) Duty to declare an interest in a proposed transaction or arrangement with the company