Limited companies will welcome guidance on how to determine whether they have ‘de facto’ directors – those not formally appointed as directors but treated by a court as having fiduciary and other duties to the company as if they had been formally appointed because they have behaved as if they were full directors – following a recent High Court ruling.
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Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.
Case law: Shareholders’ failure to complain about ‘unfair prejudice’ at the time led to claim being rejected
A director’s failure to avoid a ‘situational conflict’ or to get authorisation for it was a breach of his company law duties, and amounted to unfair prejudice to minority shareholders - but the victims’ failure to complain at the time meant their claim failed.
Dissenting directors in a boardroom dispute should not 'go public' with the dispute or with confidential company information, and confine these to debate and discussion within the boardroom - or risk breaching their statutory duty to exercise independence in their role, a ruling makes clear.
Articles and books in the Library collection
Company law, 1982-
(Oxford University Press, 1982-)
An annually updated book intended to be a clear, straightforward, up-to-date introduction to English company law.
Company formation: a practical global guide
(Globe Law and Business, 2014)
Aimed at lawyers advising companies on setting up in a new jurisdiction or heads of business planning to expand into the global market.
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