Cookies?
Library Header Image
LSE Research Online LSE Library Services

Corporate opportunities law and the non-executive director

Witney, Simon (2016) Corporate opportunities law and the non-executive director. Journal of Corporate Law Studies, 16 (1). pp. 145-186. ISSN 1473-5970

[img]
Preview
PDF (Journal of Corporate Law Studies 16 1 2016.pdf) - Published Version
Available under License Creative Commons Attribution.

Download (3MB) | Preview
Identification Number: 10.1080/14735970.2015.1117349

Abstract

This article considers the current state of the fiduciary duty to avoid conflicts of interest as it applies to non-executive directors (NEDs) of UK companies, particularly in the context of corporate opportunities discovered by them in an outside capacity. The article charts the current law through the no-conflict and no-profit rules developed by the common law, and argues that the Companies Act 2006 leaves significant real-world uncertainties for the modern non-executive with outside business interests. Empirical data gathered from the largest listed companies in the UK are used to show that companies do attempt to legislate for this problem, but in a way that is only partially satisfactory. Finally, the article argues that the courts can and should develop the law in a way that accords with these real-world contractual solutions and the commercial expectations of NEDs, and suggests how the courts should approach cases of this type.

Item Type: Article
Additional Information: © 2016 The Author(s) © CC BY 4.0
Divisions: Law
Subjects: K Law > K Law (General)
JEL classification: K - Law and Economics > K2 - Regulation and Business Law > K22 - Corporation and Securities Law
Sets: Departments > Law
Date Deposited: 15 Mar 2016 11:18
Last Modified: 20 May 2019 02:03
Projects: ES/J500070/1
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/65736

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics