Category: Fiduciary Duty of Directors

Percival v. Wright, (1902) 2 Ch 421

Post author By TYC
Post date December 11, 2022

ISSUE:

Whether the directors of a company only owe duties of loyalty to the company or to individual shareholders?

RULE:

The directors of a company are not trustees for specific shareholders and are free to buy their shares without disclosing that the sale of the firm's undertaking is currently being negotiated.

Subscribe to Read More.
Login Join Now

Fiduciary Duty of Directors

Ferguson v. Wilson, (1866) 2 Ch App 77: 15 LT 230

Post author By TYC
Post date December 11, 2022

ISSUE:

Whether the agreement that had been made between the shareholders and the company's directors could be specifically performed?

RULE:

The firm cannot function as an individual without the directors acting as its agents. The directors are the company's hands and faces, they establish the principles for its operations.

Subscribe to Read More.
Login Join Now

Fiduciary Duty of Directors

Peskin v. Anderson, (2001) 1 BCLC 372

Post author By TYC
Post date December 11, 2022

ISSUE:

What are the duties of the directors under English Law?

RULE:

The directors are not agents or trustees of members or shareholders and owe no fiduciary duties to them. Directors are only agents and trustees to the company.

Subscribe to Read More.
Login Join Now

Light

Dark