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Law Notes Company law Notes

Directors Notes

Updated Directors Notes

Company law Notes

Company law

Approximately 805 pages

Company law notes fully updated for recent exams in the UK. These notes cover all the major LLB company law cases and so are perfect for anyone doing an LLB in the UK or a great supplement for those doing LLBs abroad, whether that be in Ireland, Canada, Hong Kong or Malaysia (University of London). These notes were formed directly from a reading of the cases and main texts and are vigorous, concise and very well written.

Everything is conveniently split up by topic as you can see by the list o...

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The following is a more accessible plain text extract of the PDF sample above, taken from our Company law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Directors

Model Articles Article 3

  • The directors are subject to the articles, responsible for the running of the company and may exercise all of the company’s powers.

Collectively the directors make up the board of directors. However under Article 5 of the Model Articles the board may delegate its collective powers to an individual, either generally or in relation to specific matters.

Part 10 of the Companies Act contains statutory rules regarding directors.

Model Articles Articles 17 for Ltds or Article 20 for plcs, a director may be appointed by an ordinary resolution or by a board resolution.

A company may remove a director by passing an ordinary resolution. (Companies Act s.168)

Defective appointments

The acts of a person acting as director are valid notwithstanding that the director was not validly appointed, unable to vote, disqualified or had otherwise seemed to be a director. (Companies Act s.161)

Morris v. Kanssen

  • Lord Simmons said there was a vital distinction between a prepared director who has been appointed but there is a defeat in their directorship and a purported director in respect of whom there has never been any appointment. In the first instance there should be the ability for third parties to rely on the actions, whereas the second instance, there has been no appointment at all (and so Companies Act s.161 will not apply).

Directors Service Contracts

A director may not have a service contract for more than 2 years unless it has been authorised by ordinary resolution of the members. (Companies Act s.188)

Remuneration of directors

Directors are not entitled to any remuneration under Company Law. The board has the ability to set recommendation for directors.

Guinness v. Sanders

  1. The board appointed a committee to handle a takeover bid, and as part of this the committee paid one of the directors on the committee 5 million special remuneration for his work.

  2. House of Lords rejected the validity of this, only the board could make special remuneration awards. This was outside the scope of the authority which had...

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