Company Law Essay Example | Topics and Well Written Essays - 2000 words - 9

Company Law - Essay Example The United Kingdom Company Law Act 2006, the brought in new regulation redefining the role of the directors. Directors then if not supervised well may overlook their responsibility, and that’s why courts all over define that they hold Fiduciary positions in the company. Directors are deemed as the major body to which the duties of managing general affairs of the company are delegated (John 2006) Company Act enacted on November 2006, brought about revolutionary changes to the United Kingdom law, which had existed for more than 40 years. For years, the mandate of interpreting the law on companies was left to the courts. The main goal of introducing this law was to modernize the law and make it relevant to the modern businesses and the prevailing conditions of this century. The Act, among other things, tries to streamline and lay the legal requirements for the administration of private companies, which form the majority of the United Kingdom Companies. According to (Law Teacher 2013), the law also introduced new measures to improve the integrity of company information. It also gave the shareholder the powers to intervene in the governance of the companies (Sheikh, 2013). A case by Howard Smith Ltd v. Ampol Ltd, involving the duties of directors brought mixed reactions in courts while defining the extremes directors can use their power. In this case, the directors had issued la rge numbers of shares, which in turn deprived a specific shareholder the basic right of voting in matters concerning the company. Before the introduction of this crucial enactment, the law of the directors of the companies was a mixed up between common law and the statute law. Directors had for a long period taken to have a fiduciary relationship to their companies. Therefore, the new law brought a codified law that clearly describes the responsibilities of the company directors. The codified law then applies to all directors of a company and