Directors' Self-Interested Dealings: Liabilities and Remedies
Posted: 1 Oct 1999
Abstract
The recent Law Commission consultation paper on directors' duties addresses principally the scope of the many duties and disabilities imposed on company directors, particularly those rules affecting directors' dealings with their companies. As a complement to the Law Commission's consultation paper, this article examines the various different, yet overlapping, sets of liabilities and remedies which can arise out of unauthorised dealings between directors and their companies. Three sets of liabilities are identified and examined: two in equity, and the liabilities imposed by the Companies Act 1985, Part X. The article also considers the similarities and differences between these liabilities and remedies, and makes some suggestions for simplification, particularly of the statutory regime.
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