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4 Companies Act Advice Articles

Directors Duties - comply or perish!

Given the current economic uncertainties, it is timely to consider the duties of company directors. The penalties for breaches can be harsh, and it is important to be aware of your responsibilities to the company, its shareholders, and third parties.

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Timely reminder of directors’ duties

In the recent case of Morgenstern v Jeffreys, the Court of Appeal dismissed an appeal against a High Court ruling that Morgenstern had breached his duties as a director by selling all of the shares in Morning Star Limited to Morning Star Enterprises Limited (in liquidation) for $3.5 million.

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Directors Duties

While limited liability companies are considered a separate legal entity, directors can still become personally liable if they breach their duties.

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