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Part III The General Duties of Directors, 12 Duty to Promote the Success of the Company

Mark Arnold, Marcus Haywood

From: Company Directors: Duties, Liabilities, and Remedies (4th Edition)

Edited By: Mark Arnold KC, Simon Mortimore KC

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 23 July 2024

Subject(s):
Credit — Approved person — Conduct of business regulation — Controlled activities — Regulated persons — Statutory duty

This chapter covers the director's duty to promote the success of the company. The director of a company must act in good faith that would likely promote the success of the company for the benefit of its members as a whole. Moreover, the duty imposed by this section has effect subject to any enactment or rule of law requiring directors, in certain circumstances, to consider or act in the interest of the company creditors. The duty to promote the success of the company is closely related to the other general duties owed by a director to the company. The chapter mentions how a director who wants to be protected from the risk of being in breach of duty may obtain consent, approval, and authorization of members.

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