Director Duties - Statutory Overview

What does the duty to promote the success of the company specifically refer to?

Which of the following best describes the duty to exercise independent judgment?

In the context of duty of loyalty, what does section 176 prohibit directors from doing?

The no-conflict principle established in Bray v Ford is fundamentally concerned with which issue?

What is the primary meaning of the duty of care under company law?

Which section specifically requires directors to declare their interest in proposed transactions?

Which of the following duties focuses on ensuring directors act strictly within their authority?

What must a director do if a conflict of interest is identified?

Under s175, what action can potentially constitute a breach for a director?

What is the significance of the rule under s176 concerning directors accepting benefits from third parties?

What does s174 require from directors in terms of their duties?

What type of opportunities must directors prioritize according to their duties?

Which of the following best describes a situation where a director has not breached the duty under s175?

What is a potential consequence for directors who fail to act on viable business opportunities?

How does the rule under s176 differ from s175 regarding director benefits?

What is required of a director under s177 when they are interested in a proposed transaction?

Under what circumstance does a director not need to declare an interest according to s177?

Which scenario illustrates a breach of the duty to avoid conflicts of interest?

What is the primary duty imposed by s175?

Which of the following is true regarding s176's prohibition on accepting benefits?

In the context of self-dealing transactions, what is required from directors under CA 2006?

What constitutes a criminal offence according to s182?

What must a director do if they are approached by a client who prefers to work with them personally instead of their company?

What outcome results from failing to disclose an interest in a self-dealing transaction?

The duty to promote the success of the company is covered under section s171.

The no-conflict principle allows directors to profit from situations where a conflict of interest exists.

Under s176, directors are prohibited from accepting benefits from third parties.

A director must exercise independent judgment according to section s175.

The duty of care primarily involves exercising reasonable care, skill, and diligence.

Section s177 requires directors to declare their interests in any past transactions.

The duty to avoid conflicts of interest is governed by sections 175 to 177.

A director can accept a benefit from a third party if the benefit is considered trivial.

A director automatically breaches their duty of care by failing to pursue every business opportunity.

Authorisation by directors is allowed under s176 for accepting benefits from third parties.

Directors must always avoid self-dealing transactions regardless of disclosure requirements.

Directors must exercise a standard of care equivalent to that of a reasonably diligent person in their position.

A formal communication of a potential conflict of interest is compulsory for all directors under s175.

A director who is not aware of a minor shareholding that could conflict must still declare it according to s177.

If a director's service contract is under discussion, they must declare any interest related to it.

If a director personally exploits an opportunity without presenting it to the company, they may breach both s175 and the duty of care.

When declaring interests in proposed transactions, a general notice can be used if there is no identified transaction.

The duty under s175 applies only to situations where a director receives a financial benefit.

Directors are required to disclose any existing transactions, even if they have not been discussed in previous meetings.

Failure to act on a viable opportunity could potentially lead to a breach of duty of care.

It is sufficient for a director to verbally inform the board of a relevant interest at any time during the negotiation of a transaction.

A director's constitutional duties allow them to receive financial benefits from third parties without restrictions.

In cases where a personal gain arises from a business opportunity, it must go to the company first.

If a situation cannot reasonably be regarded as likely to give rise to a conflict of interest, a director may proceed without disclosing their interest.

Failing to disclose an interest in a self-dealing transaction can result in a criminal offence.