2023년 2월 11일 토요일

Explain the corporate director's duty to promote the success of the company under English law.

Under English law, the duty of a corporate director to promote the success of the company is set out in Section 172 of the Companies Act 2006. This duty requires a director to act in the way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, taking into account a range of factors including the long-term consequences of any decision, the interests of the company's employees, the need to foster relationships with suppliers, customers, and others, the impact of the company's operations on the community and the environment, and the company's reputation. In essence, this duty requires directors to act in the best interests of the company and to prioritize the success and long-term stability of the company over their own personal interests or those of any particular stakeholder group. This duty is central to the role of the director and is seen as a cornerstone of good corporate governance. It is important to note that the duty to promote the success of the company is a general duty, and directors are also subject to other specific duties and obligations under English law, such as the duty to exercise independent judgment, the duty to avoid conflicts of interest, and the duty to exercise reasonable care, skill and diligence. These duties complement and reinforce the duty to promote the success of the company, and together they help to ensure that directors act in the best interests of the company and its stakeholders.

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