The UK Companies Act 2006 (section 175), imposes on directors a duty to promote the success of the company, which encompasses the duty to act in good faith and in the best interests of the company.
In particular, directors are under a statutory obligation to foster the company’s business relationships with suppliers, customers and others; duty to avoid conflicts of interest, which means that directors must avoid situations of conflict, or potential conflict, between the duties that they owe to the company and their personal interests or duties owed to a third party (e.g. by having a financial interest in a competing company).
In particular, they must not exploit any property, information or opportunity of which they become aware at a time when they were acting as directors, unless authorised by the other directors of the company, in accordance with the Companies Act 2006.
Section 175 applies in the same way to a conflict of duties and a conflict of interest and duty.
For Company Law Advice and Assistance contact Gregory Abrams Davidson Solicitors today on 0151 236 5000 in Liverpool or 020 209 0166 in London.
