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Question 1
Taking into account Companies Act zoo, s. 172, is it true to say that a director owes his duties to the company alone?
Caution!
■ for this question you will need to have an appreciation of the difference between shareholder primacy and stakeholding approaches, and the concept of ‘enlightened shareholder value’ from CA 2006
■ The focus of this question Is to whom duties are owed rather than. zoo6, s. tyz itself, so don’t provide a lengthy discussion of all aspects of the section (such as the ‘good faith’ point) that would be relevant in a more general analysis of s.
Diagram Answer Plan
NI… to the company: z 170 and common law
The position of shmeholdets
‘Having regard to. in nests of other constituents
The position of <redit. Enforcement of x 172 and stAtholtiing considerations
Coodt.ion: limitations and impact of x 172
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s. oiredon. D..
Suggested Answer