Company Compliance
7. Common Law Directors Duties
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 06 Jul 2015
- There are common law duties imposed on directors in addition to the statutory requirements. Common law duties are those that have grown out of cases decided by the courts. Sometimes they have arisen as part of the process of interpreting the written law and other times they have evolved through the facts of the case themselves.
- In simple terms these duties are:
- the duty to act in good faith in the interests of the company as a whole;
- the duty not to act for an improper purpose;
- the duty of care and diligence;
- the duty to retain discretion;
- the duty to avoid conflicts of interest;
- the duty not to disclose confidential information; and
- the duty not to abuse corporate opportunities.
- These duties apply to all types of companies no matter how big or small. These duties are also constantly evolving and a compliance lawyer will know what the latest interpretation of the law in this area means for you and your company.
- You can use our free Find a Lawyer directory to look for an experienced compliance lawyer near you.
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