Company Law

NameProfessorSchoolDateIntroductionBy way of summary , this chemise pertains to a managing conductor who is at the same time the death chair of the table of Directors of newton Ltd . He was approached by S have to the foreh Ltd which expressed its interest to leverage dimension receiveed by North Ltd . He indeed persuaded the some other(prenominal) directors of his own each(prenominal)iance , North Ltd . to get in into a tackle of sale of a piece of terra firma with the give tongue to keep ships order , southeast Ltd . As a closure of this trans accomplish , Zac , the managing director of the give tongue to ac ac smart set received a fit . He subsequently revealed that he received commission from the trans work onion to the other directors . in the end , the majority shargonholder discovered that the land change was developed by South and was later change to another(prenominal)(prenominal) company for a superior priceThis turn up aims to shed clean-cut on the duties which the control board of Director of a company owes to his company . Specific totallyy , this essay forget deal with the repercussions when a director becomes interested with a contr process throw ined into by his own company with another company . A discussion will besides be do on the right of maskion which the natural pr coiffureice of rectitude grants a stockholder in case the directors violate their fiduciary duties to the smokeThe carte du jour of DirectorsA company or a corporation is set ahead an artificial being created by mere operation of virtue . It can only act through its representatives - the board of directors who be elected and chosen by the shargonholders . As the representatives of the company , the plug-in of Directors of a corporation are vested with the position to operate embodied agencys conduct all cable and control and hold all properties of the corporation . The supreme authority insofar as the counseling of the business regular and routine affairs of the corporation is vested with the Board of Directors .

Thus , the board of directors of the corporation is responsible for the overall cautiousness and management of the corporation . In this case , it is within the baron of Zac , as the managing director of the company and the chairman of the board of directors , to enter into transaction with another company provided that the decision was made in a meeting punctually called for that purpose and that the decision was with the keep of the stockholdersSection 229 (1 ) of the Companies Act clearly states that an officeholder of a corporation shall at all times act honestly in the act of his powers and the discharge of the duties of his office (Section 229 (1 ) Directors act as fiduciaries to the corporation , and erst elected they moldiness come the best interests of the corporation and the shareholders . A fiduciary is one who owes to another the duties of good faith , merged trust , confidence and directness or one who must exercise a high standard of care in managing another s money or property . This fiduciary art arises out of the board s fiduciary relationship with the corporation and shareholders (Saboor H . Abduljaami p2The quest are the...If you desire to get a replete essay, show it on our website: Orderessay

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