Who are directors duties owed

Directors duties are owed to the company therefore in the main enforceable only by the company itself [31] , although if the company's solvency is in doubt or it is insolvent, the directors also owe duties to the company's creditors by virtue of s172 (3) and this can be enforced by the liquidator or administrator.Directors' duties can easily be split into two parts:Most of the directors' powers and their restrictions are contained in a company's articles of association.All duties must be performed as per the act.A director must act in the best interest of the company as a whole.

It is a central part of corporate law and corporate governance.We provide the best legal advice to help your business succeed. directors owe a number of duties to the company and many of these duties are provided in the common law and the florida statutes.There are cases, though, when the company's best interests are hard to define.They also have important duties to the shareholders and owe certain duties to the creditors in case of the insolvency of the company.Nor should they avoid their responsibility to make independent decisions by relying on the knowledge or judgement of other directors or experts.

Determining the company's strategic objectives and policies monitoring progress towards achieving the objectives and policies appointing senior management accounting for the company's activities to relevant parties, eg shareholders making the first appointment4 this includes avoiding conflicts of interest, as well as revealing and managing conflicts if and when they arise.Breach of a director's duty can carry the penalty of the director having to reimburse the company for any loss or damage it has sufferedThe board of directors of a company is primarily responsible for:Directors have an indirect duty to creditors (direct duty is to the company).

In performing their role, a director is subject to five key duties and obligations under corporation law, and the company's constitution:The directors have the duties to work within the powers, to exercise the reasonable skill and care, and to work for the success of the company.