p. 20310. Duty to promote the success of the company
- Brenda HanniganBrenda HanniganProfessor of Corporate Law University of Southampton
Abstract
The Companies Act 2006, s 172(1) requires directors to act to promote the success of the company. This chapter separates that duty into its component elements: the duty to act in good faith; promoting the success of the company for the benefit of the members as a whole; and having regard to stakeholders. The policy background to the introduction of these obligations is considered, looking at the extent to which stakeholder interests are an important facet of this duty. The chapter also addresses in detail the modified duty to consider creditors' interests in s 172(3) and explores at length the landmark judgment in BTI 2014 LLC v Sequana SA on this issue.
