Business Law and Purpose ReflectionSamples †MyAssignmenthelp.com

Question: Discuss about theBusiness Law and Purpose Reflection. Answer: The experience which has been selected for the purpose of this reflection are duties of directors which they owe towards our company. I got to know that directors not only have a duty imposed on them by the common law in form of fiduciary duties but also specific statutory duties have been provided by especially in enacted legislations. I got to know that the directors must always have to such a way so as to ensure that best interest of the company is established. Directors are in Supreme control over the affairs of the company. They have been provided the right to manage the company by its members and shareholders. As a company has many members all of them cannot engage in its management and therefore directors are needed to effectively manage a company. Directors evidently act as a fiduciary of the shareholders. They have the natural duty to protect the interest of the shareholders in the company. In addition as company is not a natural person and it cannot act on its own the directors have to ensure that they act in such a way as to not cause any loss or harm to the company for the purpose of making personal profits. There are many events witnessed by the corporate world where directors have used a position to make improper use of the Assets and resources of the company personal gain. They have also been instances where the directors have been negligent and reckless towards the duties imposed on them and as a result have got significant harm to company. The directors can be sued for such actions not only under statutory provisions but also under common law negligence. They might be disqualified to act as director for a specific period or permanently. They may also be held personally liable for the losses incurred by the company. Therefore I learned that the directors must always be very diligent and careful towards the duty is imposed on them by common law and specific legislations.