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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 8148
Experience:  English solicitor with over 12 years experience
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What inadequacies are there in directors duties under the

Customer Question

what inadequacies are there in directors duties under the companies Act 2006?
JA: Where is this? It matters because laws vary by location.
Customer: UK law
JA: What steps have been taken so far?
Customer: s.171-s.177 Companies Act 2006
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No. I am a law student seeking help
Submitted: 12 days ago.
Category: Law
Expert:  UKSolicitorJA replied 12 days ago.


I am a solicitor.

Enforcement of the duties has been a major problem and there is very little litigation against directors due to the subjective nature of the duties e.g. duty to act in good faith.

Customer: replied 12 days ago.
what can be done to improve the duties of directors so that directors of a company do not abuse their powers?
Customer: replied 12 days ago.
I prefer to text than call
Expert:  UKSolicitorJA replied 12 days ago.

The other issue is that director's breaches may be ratified by shareholders, so there is no real effective way of enforcement of their duties other than resorting to courts which can be time consuming, costly and uncertain.

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