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Part III The General Duties of Directors, 17 Duty to Declare Interest in Transaction Or Arrangement

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):
Approved person — Conduct of business regulation — Regulated activities — Regulated persons — Statutory duty

This chapter elaborates on the duty to declare interest in a transaction or arrangement. If the other party to the transaction had notice of the irregularity, the company might rescind the contract and the director will be liable for breach of duty. Moreover, the director might also be liable for breach of duty and under a duty to account for profits obtained because of such dealings. Under Section 177 of the Companies Act 2006, directors have a general duty to declare the nature and extent of their interest in a proposed transaction or arrangement to the other directors. The chapter details the duties in relation to either an existing or proposed transaction or arrangement.

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