In this back to basics article, we take a brief look at directors’ duties. Whilst directors of companies have always had certain duties placed upon them, the Companies Act 2006 set out seven key duties owed by a director to its company:   (a)   Duty to act within your powers (s171) (b)   Duty to promote the success of the company (s172) (c)   Duty to exercise independent judgment (s173) (d)   Duty to exercise reasonable care, skill and diligence (s174) (e)   Duty to avoid conflicts of interest (s175) (f)    Duty not to accept benefits from third parties (s176) (g)   Duty to declare an interest in a proposed transaction or arrangement (s177) These duties are contained at Chapter 2 of the Companies Act 2006. Breach of directors’ duties Failure to uphold director’s duties will result in a breach by the director(s) concerned. Often … Continue reading →