Statutory Duties of Directors
The general duties of directors (see Chapter 11) are in some cases reinforced by specific statutory duties spelt out in what are usually very complicated provisions. A general overview of some of the more important sections is given here. The detail of some of the provisions appear in the Casenotes. Many of these duties were introduced as a result of financial scandals. The government of the day wished to be seen to be ‘doing something’ to remedy the situation. Very few of the provisions in Part X of the Companies Act 1985 are enforced and abolition of this part of the Companies Act is under active consideration. The Companies Act 1985, s. 320–330 prohibits companies from entering into contracts for the buying and selling of property, making loans and similar transactions to or in favour of directors and, in some cases, persons connected with them. ‘Director’, for the purpose of these sections, includes ‘shadow’ director.
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Bibliography and Further Reading
- Dine, ‘Disqualification of Directors’ (1991) 12 Co Law 6.Google Scholar
- Dine, Criminal Law in the Company Context, Dartmouth, 1995.Google Scholar
- Gore-Brown on Companies, ch. 27.Google Scholar
- Guidelines for Directors. Institute of Directors, 1990.Google Scholar
- Sealy, Company Law and Commercial Reality. Sweet & Maxwell, 1984.Google Scholar
- Sealy, Disqualification and the Personal Liability of Directors. CCH, 4th edn, 1992.Google Scholar
- Suter, Insider Dealing in Britain, Butterworths, 1989.Google Scholar
- Hopt and Wymeersch, European Insider Dealing, Butterworths, 1991.Google Scholar