Statutory duty not to accept benefits from third parties (section 176 of the 2006 Act)
The second statutory duty which comes into force on 1 October is the duty not to accept benefits from third parties. The duty applies to all manner of benefits but does not apply if the matter “cannot reasonably be regarded as giving rise to a conflict of interest”. Therefore the size of the benefit and the comparative wealth of the director are likely to be factors in determining whether a director is in breach of this duty.
It is also recognised that benefits from a company used to provide the directors’ services to the company of which he is a director would not be regarded as a benefit conferred upon that director.
If the director is receiving a benefit, it can be authorised by the members of the company.
For more information please contact Helen Goose on 0117 918 1322 or email her at helen_goose@jordans.co.uk.
