Companies Act 2006: Directors' Duties and Conflict of Interest

This presentation delves into the critical aspects of directors' duties and conflicts of interest as defined by the Companies Act 2006. It begins with an introduction to the subject matter and subsequently explores the specific obligations of directors, emphasizing the importance of disclosing potential conflicts. The presentation details the duties of directors, the necessity of obtaining member approval, and the significance of a defined agenda. It further identifies various conflicts of interest scenarios, including multiple directorships, roles as customers or shareholders, and advisory positions. The presentation also covers relevant sections of the Companies Act 2006, including the consequences of non-compliance. Furthermore, it provides a discussion on resolving conflicts in both public and private companies, referencing the Edgar V Munro Chancery Division case. Finally, it offers a conclusion summarizing the key takeaways from the analysis of the Companies Act 2006 regarding directors' responsibilities.

LAW PRESENTATION

Table of Contents
• INTRODUCTION
• DIRECTORS DUTY TO AVAIL CONFLICT UNDER SECTION 175 OF COMPANIES
ACT, 2006
• CONCLUSION
• REFERENCES

INTRODUCTION
Companies act, 2006 reflects the overall working structure of the company and also
imposes liability to the members of the company in respect of dealing in any activities in
right manner.

DIRECTORS DUTY TO AVAIL CONFLICT UNDER SECTION 175 OF COMPANIES ACT, 2006
Directors are the whole and sole of the company as they are in charge of managing the
overall activity in the business.

To be contin…..
Duties of the directors:
• Confidential information
• Approval from all the members
• Specific agenda

To be contin…..
Conflicts of interest:
• multiple directors
• Post as the customer or shareholder or supplier
• advisors role

To be contin…..
• Section 175 of the companies act, 2006
• Punishment
• Criminal matters

To be contin…..
Resolving the issues against the conflict
• Public companies
• Private companies

To be contin…..
Edgar V Munro Chancery Division (Companies Court) 18 July 2017
• minority right in the company
• deadlock amount of the 50:50 ratio

CONCLUSION
From the above study, the discussion is examined that under companies act, 2006 the role of
directors are to be undertaken in respect of determining the complete control of the
company.

REFERENCES
Books and Journals
• McLaughlin, S., 2018. Unlocking company law. Routledge.
• Tsagas, G., 2017. Section 172 of the Companies Act 2006:
Desperate times call for soft law measures. Draft Paper
for contribution: Tsagas, G.