Company Law Essay Example | Topics and Well Written Essays - 2500 words - 3

Company Law - Essay Example1 Alistair Darling, deposit of State of the Department of Trade and Industry said that while most of the provisions of the Companies Act 2006 will be in force by October abutting year the entire Act will be in force by October of 2007.2While the Companies Bill 2006 introduces some new aspects to company law, it might confine left the regulations of directors duty up to judicial interpretation and company law. The general impression is that the 2006 Bill does nothing much to improve on the directors duties as enunciated under the provisions of the Companies Act 1985.3- The Companies Bill 2006 tightens the Directors duties in respect of due diligence by broadening the rights of shareholders to sue directors for negligence and other defaults and rights to flirt derivative claims on behalf of the company in trustworthy circumstances.3Under the provisions of the Companies Act 1985, together with principles of Common Law and Equity, directors have a fiducial relationship with the company they serve. In their capacity as fiduciaries, directors have three primary duties in respect of the management of the companys affairs. They areIn Re City Fire Equitable Insurance Co., Romer J added that in the course of exercising his duties as a director, the director was subject to a certain standard in law. That standard he went on to explain was the reasonable skill and care that was generally expected of a business man possessing the germane(predicate) skills and training.5Moreover the common trend in the application of Common Law and Equitable principles was to impose the duty on the directors in respect of the company itself or else than in respect individual shareholders. In f conduct Section 309 of the Companies Act 1985 codified this proviso by requiring that directors owe a duty of care to act in the best interests of both the members and the employees of the company.6Although this duty necessarily