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By Paul Raby

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Resignation. Removal. Death. Disqualification. 1 Retirement This usually occurs by virtue of some provision in the Articles which requires the director to retire, for example, the Table A provision for retirement by rotation. Retirement by rotation Every director must offer himself for re-election by the members at regular intervals. At the first AGM the whole board must retire and offer themselves for re-election. They will automatically be re-elected unless a resolution to the contrary is passed by the members.

No board meetings were held, and P and H made only rare visits to the business. Loans made by S did not comply with the Moneylenders Acts and adequate security was not taken to ensure recovery of the debts. This was made easier by the fact that P and H had pre-signed blank cheques, allowing the details to be added later. The company brought an action against all three directors for alleged negligence and misappropriation of the company’s property. It was held that all three directors were liable for damages.

2 They must not allow a conflict to arise between their personal interests and the interests of the company. For example, the issuing of shares is done by the directors as part of their day-to day management of the company. 3. fiduciary duty The duty of directors to act in good faith in the best interests of the company, avoiding any personal conflict of interest. 3 Case Example Hogg v Cramphorn [1967] Ch 254 Directors of a company were anxious to fight off a takeover bid. They issued shares to trustees to be held for the benefit of employees.

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