Which Stakeholders Can Currently Be Considered to Be Part of the “the Company” for the Purpose of the Director's Duty to Act in the Best Interests of the Corporation?
which stakeholders can currently be considered to be part of the “the company” for the purpose of the director’s duty to act in the best interests of the corporation?
Company is a form of corporation and regulated by the Corporations Act. The legal significance of being as a company is it exists as a separate legal entity and dependent upon human beings to make decisions on their behalf. The person who makes or participates in making decisions that affect the whole or a substantial part of the company’s business can be defined as a director. The legal definition of director is stated under section 9 of the Corporations Act[1] which indicates that, it is more appropriate to look at the function of the people rather than at the job title itself. Duties are imposed on the directors to regular illegal behavior and ensure that they act for the benefit of the company. All directors and officers of a corporation are bound by a number of general law and statutes which include that: a) act in good faith in the interests of the company; b) act for a proper purpose; c) avoid conflicts of interest; and d) retain discretion
Moreover, care, skill and diligence in the performance of their duties must exercised by directors.
Stakeholder can be defined as a party that affects or can be affected by the actions of the business[2], which may be include shareholder, creditors, employees, customer, supplier and government. Under the principle of the company law, directors and officers owe duties to the company as a whole but not to the other person or group rather that shareholder as they are the residual owners of the company’s assets. As a result, it can be said that a scope is limited by the statutory duties to the company’ director and officer is to act the best interest of shareholder, any benefit is acting on the other group of the stakeholder (such as the creditor) will beyond the scope of director’ power. In addition, an essential problem might be arisen
Company is a form of corporation and regulated by the Corporations Act. The legal significance of being as a company is it exists as a separate legal entity and dependent upon human beings to make decisions on their behalf. The person who makes or participates in making decisions that affect the whole or a substantial part of the company’s business can be defined as a director. The legal definition of director is stated under section 9 of the Corporations Act[1] which indicates that, it is more appropriate to look at the function of the people rather than at the job title itself. Duties are imposed on the directors to regular illegal behavior and ensure that they act for the benefit of the company. All directors and officers of a corporation are bound by a number of general law and statutes which include that: a) act in good faith in the interests of the company; b) act for a proper purpose; c) avoid conflicts of interest; and d) retain discretion
Moreover, care, skill and diligence in the performance of their duties must exercised by directors.
Stakeholder can be defined as a party that affects or can be affected by the actions of the business[2], which may be include shareholder, creditors, employees, customer, supplier and government. Under the principle of the company law, directors and officers owe duties to the company as a whole but not to the other person or group rather that shareholder as they are the residual owners of the company’s assets. As a result, it can be said that a scope is limited by the statutory duties to the company’ director and officer is to act the best interest of shareholder, any benefit is acting on the other group of the stakeholder (such as the creditor) will beyond the scope of director’ power. In addition, an essential problem might be arisen