Shareholders and Directors
Section 4
DIRECTORS' DUTIES
n
To exercise independent judgement.
n
To exercise reasonable care, skill and diligence.
n
To avoid conflicts of interest.
n
Not to accept benefits from third parties.
n
To declare any interest in proposed transactions or arrangements.
n
To promote the success of the company.
n
To act within their powers.
Certain other rules also affect directors. The main things which directors
have to have regard to are:
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the long term consequences of a decision.
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the interests of the company's employees.
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the need to foster relationships with suppliers, customers and others.
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the impact on the community and the environment.
the desirability of the company maintaining a reputation for high
standards of business conduct.
n
n
the need to act fairly between members of the company.
There are also rules about the making of loans to directors. Certain
transactions with directors need to be approved by the shareholders, such
as the acquisition of an asset from a director. Directors have to comply
with certain internal management issues such as the keeping of accounting
records, preparing annual accounts, filing documents with the Registrar
of Companies and keeping the statutory books of the company.
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