The Companies Act 2006 (the “2006 Act”) codifies directors’ general duties in Part 10 of Chapter 2.
The duties are:
- to act within powers;
- to promote the success of the company;
- to exercise independent judgment;
- to exercise reasonable care, skill and diligence;
- to avoid conflicts of interest;
- not to accept benefits from third parties; and
- to declare interest in a proposed transaction or arrangement.
The first four of these duties took effect on 1 October 2007 and the last three will take effect on 1 October 2008.
For more information please contact Helen Goose on 0117 918 1322 or email her at helen_goose@jordans.co.uk.
Our recent Corporate Focus newsletter highlights the directors' duties already in place. Download a PDF copy here.
