Powers of directors
In this lesson, you'll learn what directors are actually allowed to do within a company and what limits apply to their powers.
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In this lesson
- 0:00 Directors' Powers and Agency
- 0:19 Constitutional Limits and Proper Purpose
- 1:00 Duty of Good Faith and Personal Liability
- 1:29 Board Powers and Executive Delegation
- 2:00 Shareholder Controls Over Directors
- 2:32 Statutory Limits on Director Transactions
- 3:35 Employment and Severance Approvals
About this lesson
Directors act as agents of the company with authority to manage day-to-day business—such as entering contracts, purchasing from suppliers, and hiring staff—but they must always act within the company's constitution (articles of association) and for proper purposes decided by shareholders, not themselves. You'll also explore the key duties directors owe, including acting in good faith and not enriching themselves improperly, and discover how shareholders can control director powers through removal, rule changes, and statutory restrictions under the Companies Act 2006. This is essential knowledge for the Corporate and Business Law paper, as understanding director authority and the safeguards against misuse directly impacts how companies operate and protects shareholder interests.
Duration: 5m
Transcript
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