Section 131: Duty of Directors to Act in Good Faith and in Best Interests of Company

Wednesday, September 20, 2017
In accordance with Section 131 of the Companies Act 1993 ("Act"), directors have a duty to act in good faith and in what they genuinely believe to be the best interests of the company.  While it may be expected that directors should always behave in such a manner, and not place their personal interests ahead of the company's, various judgments have explored the extent of this duty and provided more information about the considerations director should take account of when exercising their powers.

The Duty
As noted in the decision of Sojourner v Robb1, the duty is one of loyalty and arises out of the fiduciary relationship that directors owe to the company from their position as its agents.  Additionally, although a director must act in good faith and in the best interests of the company on most occasions, Section 131 of the Act outlines that there are a few exceptions to this duty which allow a director to act otherwise, as follows: Read more

Reduced Limitation Periods Have Significant Consequences for Mortgagees

Thursday, September 07, 2017

 Read more

''Best Endeavours'' or ''All Reasonable Endeavours''

Monday, August 28, 2017

What's the Difference? Read more

Commercial Leases - Things Landlords Should Consider Before Entering Into a New Lease

Friday, May 12, 2017

It is in a Landlord's best interest to protect their investment and make sure any exposure to loss from a dodgy Tenant is minimised.  All too often we hear of stories involving a Landlord being duped by a Tenant for whatever reason.  Perhaps the Tenant becomes unable to pay its rent and rather than seeking out the Landlord and dealing with the situation head on, the Tenant allows its financial problems to continue until it is too late.  By this time the Landlord is often owed money in rental and outgoings arrears and in the more extreme circumstances can be left with a vacant property needing to be re-tenanted urgently. Read more

Protecting Commercial Landlords From Tenancy Default

Friday, May 12, 2017

Unfortunately situations where Tenants are unable to pay rent on their leased commercial premises happens all too often.  As a commercial property Landlord, knowing your rights and what to do if this situation arises will help minimise your losses. Read more

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