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Part III The General Duties of Directors, 16 Duty Not to Accept Benefits from Third Parties

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: 14 July 2024

Approved person — Conduct of business regulation — Controlled activities — Market abuse — Regulated activities — Regulated persons — Statutory duty

This chapter discusses the duty not to accept benefits from third parties. It defines a third party as a person other than the company, an associated body corporate or a person acting on behalf of the company or an associated body corporate. According to the Companies Act 2006, a director must not accept a benefit from a third party for reasons such as his status and orientation as a director. Acceptance of such a benefit inevitably places the director in a position of conflict of interest and duty, which also correlates to the duty of avoiding conflicts of interest. The chapter highlights that the codification of the rule prohibits the exploitation of the director's position for personal benefit.

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