UK company law reform and directors' exploitation of corporate opportunities

B. Clark, A. Benstock

Research output: Contribution to journalArticle

Abstract

Assesses the operation of the 'corporate opportunities' rule, involving a director personally pursing opportunities that could have been adopted by the company, in light of the proposed company law reforms. Comments on the role of directors as fiduciaries, the current law on corporate opportunities, the reasons for the strict approach reflected by the conflict of interest proscription, the more liberal approach to corporate opportunities in the US, the line of business test and the position of former directors. Examines the proposed duty to avoid conflicts of interest under the Company Law Reform Bill 2005 cl.159, including the possible scope of a corporate opportunity.
Original languageEnglish
Pages (from-to)231-241
Number of pages10
JournalInternational Company and Commercial Law Review
Volume17
Issue number8
Publication statusPublished - Aug 2006

Keywords

  • conflict of interest
  • directors powers
  • directors duties
  • fiduciary duty
  • loss of chance
  • company law reform
  • corporate opportunity

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