StudentShare solutions
Triangle menu

Company Law: Company Law Reform Bill - Essay Example

Nobody downloaded yet

Extract of sample
Company Law: Company Law Reform Bill

The main proposals in respect of the Directors' duties include: a statutory statement of directors' general duties; and an extended power for shareholders to sue directors for negligence and other defaults. Presently the general duties that a director owes to the company were invariably established though case law rather than statute making it difficult for such duties to be comprehended and pressed for implementation. The Bill includes a statutory statement of directors' general duties both to make the law in this area more accessible and to change the law where it no longer corresponds to modern business practice. The clauses 170-187 of the Companies Bill 2006 carry a major portion of such codification Other changes are made which affect directors, including simplification of the law relating to transactions between a company and its directors. This paper would discuss the changes brought about in the new legislation in respect of directors' duties and how these changes present an altered and improved stance over the hitherto adopted practice of deriving directors' duties through interpretation of case laws.
The governments intended to plain speak on the directors' duties so ...
On the issue of the liability of directors, the governments Government recognised that the law has to balance the need to deal fairly with directors who have been negligent or dishonest against the need for companies to have a diverse pool of high-quality candidates wishing to act as directors, and who are willing to take informed and rational risks. The Bill implements a Law Commission recommendation making it easier for shareholders to sue directors for negligence, default, breach of duty or breach of trust - a broader range of conduct than at present.1.The various duties envisaged in the new bill can be cited as follows: Duty to act within the company's powers i.e. "A director must act in accordance with the company's constitution and only exercise powers for the purposes for which they are conferred."- this codifies the common law rules that directors should exercises their powers under the terms that were granted for a proper purpose. A director's powers are normally derived from the company's constitution, i.e. its memorandum and articles of association.; Duty to promote the success of the company i.e. "A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members"- this duty is set out in section 172 of the Act and is a new duty developed from one of the heads of the overriding principles of the fiduciary duties, i.e., duty of good faith to act in the company's best interest. when exercising this duty the director is required to have regards to various non-exhaustive list of factors listed in s.172 (1) including the long term consequence of the ...Show more


The Companies Bill (earlier popular as the Company Law Reform Bill) is a major step towards extensive reform of UK company law. The government considers that these principles while long established lack certainty and are not easily accessible. Very often, directors have to take advice in these areas so as to ensure that they do not inadvertently breach any duty enshrined in the case law…
Author : flaviobartell
Company Law: Company Law Reform Bill essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Company Law: Company Law Reform Bill"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Company Law
This paper seeks to perform an IRAC analysis of fraudulent phoenix activity, whereby the issue, rule, analysis, and conclusion will be made. Issue Australian corporate law has always sought to reinforce commercial and entrepreneurial risk taking, since these are essential to the creation of wealth, as well as the continuous functioning of the market (Adams, 2012).
6 pages (1500 words) Essay
Company Law
It has been enforced with the intention to govern the operations of the corporate houses of the country and instructs them to operate with the best interest of all the stakeholders involved with them1. As per the Company Law, it is commonly admitted that company is a separate legal entity which advocates that the members of the company are distinct from the corporate body.
12 pages (3000 words) Essay
Company Law - corporate governance
Some changes are made in case law (company Law), to make the strategies of the companies and the aspirations of the stake holders to fulfilled. In this manner the case law should deal with the sincerity, diligence of the directors and the skills of the employees.
14 pages (3500 words) Essay
Company Law Bachelor Essay
Those who infuse capital into a business enterprise hire managers to run the business for them and see to its day to day affairs. The board of directors and the institutional investors also play a role in the monitoring and control of firms. However, the relationships of these players - to each other and to the general public -- must not be left alone and unregulated.
8 pages (2000 words) Essay
Company Law globalization
Too much of British company law frustrates, inhibits, restricts and undermines. It is overcautious, placing too high a premium on regulation and avoidance of risk. The company remains the choice of corporate vehicle for over a million businesses, and the core principles established by company law have served our economy well for over 150 years.
20 pages (5000 words) Essay
Company law Reform Bill
Every company has body of persons who will manage the affairs of the company such body of persons who are vested with the powers and responsibilities of managing the affairs of the company are called the directors. The appointment, remuneration, rights and responsibilities are regulated by the Company's Act, more specifically by table A of the act.
10 pages (2500 words) Essay
Company Law shareholder's rights
The Companies Act - previously known as the Company Law Reform Bill -- received its second reading in the House of Lords on January 11, 2006, and received Royal Assent on November 8, 2006. As stated by Lord Sainsbury, Parliamentary Under-Secretary of State at DTI, the purpose of the Act is to "to constantly update company law in response to changes in the way companies do business"1.
16 pages (4000 words) Essay
Company Law Issues
In the case of Muddle, there is a conflict of interest between his fiduciary duty to “Restore Ltd” vis a vis his personal interest in his own Company “City Construction Ltd”. In the case of Samson, there is an issue of penalization
4 pages (1000 words) Essay
Company Law
ining comprehensive provisions for the regulations of companies, the Companies Bill 2006 not only replaces, but restated by and large, the pre-existing Companies Acts of 1985, 1989 and 2004. Among the many changes afoot as a result of the Companies Bill 2006, directors’
10 pages (2500 words) Essay
Company Law
sis of a contract between the company and its members and it also binds the members to each other.1 The shareholders of the company are entitled to force the company to comply with the provisions of the Articles of Association.2 Generally speaking the Articles of Association
20 pages (5000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Essay on topic Company Law: Company Law Reform Bill for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us