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A DIRECTOR'S DUTY TO CONFESS: A MATTER OF GOOD FAITH?

Published online by Cambridge University Press:  04 July 2007

Lusina Ho
Affiliation:
Professor, Faculty of Law, The University of Hong Kong
Pey-Woan Lee
Affiliation:
Assistant Professor, School of Law, Singapore Management University
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Extract

In common law jurisdictions, there has been considerable academic and judicial discussion of the duties of company directors generally. In contrast, relatively little ink has been spent on the specific duty, if any, of a company director to disclose his own misconduct (in the civil realm) to the company, even less so on the nature and basis of such a duty. This is unsurprising given the very restrictive approach to disclosure obligations in English law. Thus, while a director may in loose terms be said to be under a “duty” to disclose interests that conflict with the company's, such disclosure only serves the purpose of relieving him from liability, and failure to do so per se has not been regarded as an independent source of liability.

Type
Research Article
Copyright
Copyright © Cambridge Law Journal and Contributors 2007

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