Directors' Duties: Reflection on Corporate Governance and Law

This report reflects on the duties of directors, emphasizing their crucial role in corporate governance. It highlights the fiduciary responsibilities directors owe to the company and its shareholders, including the need to act in the best interests of the company. The report examines the legal obligations of directors, including those imposed by common law and specific legislation, and the potential consequences of negligence or misconduct. It underscores the importance of directors' diligence and care in fulfilling their duties to avoid personal liability and protect the company's interests. The report also discusses the potential for directors to be sued or disqualified for failing to meet their obligations, thereby emphasizing the significance of ethical and responsible corporate leadership.

Running head: REFLECTION
Reflection
Name of the student
Name of the university
Author note

1
REFLECTION
The experience which has been selected for the purpose of this reflection are duties of
directors which they owe towards our company. I got to know that directors not only have a
duty imposed on them by the common law in form of fiduciary duties but also specific
statutory duties have been provided by especially in enacted legislations.
I got to know that the directors must always have to such a way so as to ensure that
best interest of the company is established. Directors are in Supreme control over the affairs
of the company. They have been provided the right to manage the company by its members
and shareholders. As a company has many members all of them cannot engage in its
management and therefore directors are needed to effectively manage a company. Directors
evidently act as a fiduciary of the shareholders. They have the natural duty to protect the
interest of the shareholders in the company. In addition as company is not a natural person
and it cannot act on its own the directors have to ensure that they act in such a way as to not
cause any loss or harm to the company for the purpose of making personal profits.
There are many events witnessed by the corporate world where directors have used a
position to make improper use of the Assets and resources of the company personal gain.
They have also been instances where the directors have been negligent and reckless towards
the duties imposed on them and as a result have got significant harm to company. The
directors can be sued for such actions not only under statutory provisions but also under
common law negligence. They might be disqualified to act as director for a specific period or
permanently. They may also be held personally liable for the losses incurred by the company.
Therefore I learned that the directors must always be very diligent and careful towards the
duty is imposed on them by common law and specific legislations.