Directors' duties—directors' interests: CA 2006, ss 175–177


Published by a ³ÉÈËÓ°Òô Corporate expert
Practice notes

Directors' duties—directors' interests: CA 2006, ss 175–177


Published by a ³ÉÈËÓ°Òô Corporate expert

Practice notes
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The main directors’ duties developed by the courts were set out in statute for the first time in sections 171–177 of the Companies Act 2006 (CA 2006), and all of those statutory duties (general duties) are set out in Practice Note: Directors' duties—scope, nature, interpretation and application. the chartered governance institute (CGI) has also published guidance on directors' duties. See: The Chartered Governance Institute guidance on directors' general duties.

The fifth, sixth and seventh general duties are:

  1. •

    the duty of a director to avoid a situation in which the director has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company (the duty to avoid conflicts of interest)

  2. •

    the duty of a director not to accept a benefit from a third party conferred by reason of the director being a director, or their doing (or not doing) anything as director (the duty not to accept benefits from third parties), and

  3. •

    the duty of a director to declare if they are in any way, directly

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United Kingdom
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Directors definition
What does Directors mean?

A director of a company is responsible for the day-to-day management of that company. The directors make decisions on behalf of the company in order that it can carry on its business.

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