legal aspects of business

I have a presentation on Saturday and I need 1000 words to speak about.

LEGAL ASPECTS OF
BUSINESS

Table of Contents
• INTRODUCTION
• DUTIES OF DIRECTORS TO AVIOD CONFLICT UNDER SECTION 175 OF THE
COMPANIES ACT, 2006
• CONCLUSION
• REFERENCES

INTRODUCTION
In respect of examining the legal aspects of business it is covered by two person such as
shareholders and directors of the company. In context of shareholder they carry the
important rights in company in respect of taking decision.

DUTIES OF DIRECTORS TO AVIOD CONFLICT UNDER SECTION 175 OF THE COMPANIES ACT, 2006
Directors as agent
Under the companies act, 2006, directors carry the fiduciary relationship with the company
as they work as a agent. Directors are such person which are in charge of the work but not
carry the ownership rights.

To be contin…..
Duties of directors under section 171
• Loyalty
• Following policy and norms
• Attend the meeting

To be contin…..
Under section 175 (1) of companies act, 2006
• Actual and potential conflict

To be contin…..
Under section 175 (2) of companies act, 2006
• Company property, information or clients details to earn profits for their personal saving.

To be contin…..
Under section 175 (4) of companies act, 2006
• Personally responsible in respect of committing any breach

To be contin…..
E.g. Conflict of directors under section 175
• multiple directors
• shareholder of the company
• personal use.

To be contin…..
Avoid situation in respect of facing conflict
• Taking suggestion from shareholders
• pre authorization procedure

To be contin…..
CMS Dolphin v Simonet [2001] Ch D
• Mr. Simonet is the managing director
• director of the CMS Dolphin Ltd
• committing breach as being the post of the directors
of the company.

CONCLUSION
From the above study the report concludes that directors play the vital role in business, as
they work as agent and also carry the rights in respect of maintain the confidentiality at
work place.

REFERENCES
Books and Journals:
• Ferrarini, G. and Filippelli, M., 2015. 13. Independent directors and controlling shareholders around the
world. Research Handbook on Shareholder Power. p.269.
• Lepetit, L., Meslier, C. and Wardhana, L. I., 2017. Reducing agency conflicts through bank dividend payout
decisions: the role of opacity and ownership structure. Applied Economics. 49(49). pp.4999-5026.
Online:
• CMS DOLPHIN LTD V PAUL M SIMONET AND ANOTHER: CHD 23 MAY 2001. 2019. Online. Available
through: <https://swarb.co.uk/cms-dolphin-ltd-v-paul-m-simonet-and-another-chd-23-may-2001/>.