To embed, copy and paste the code into your website or blog:
This article discusses the personal liability of directors by reason of a breach of director duty under the Companies Act 1993 (
Act), and explains how shareholders and creditors can pursue a breach of director duty claim against a director personally.
Duties owed by directors under the Companies Act 1993
The Companies Act 1993 (
Act) specifies a number of duties that directors owe to their companies. Those duties include, but are not limited to:
To act in good faith and in the best interests of the company (section 131).
To act with reasonable care, diligence and skill when exercising powers or performing duties as a director (section 137).