Commentary

92 Directors’ duties

COMMONHOLD vol 8(1)
| Commentary

92 Directors’ duties

| Commentary

92 Directors’ duties

The directors of a commonhold association, like the directors of any other limited company, are under a general duty to act bona fide in the best interests of the company1, that is in the best interests of present and future members (rather than a particular section of them2) and (if the company is insolvent) of its creditors3.

The directors may only use their powers for the purpose for which they were conferred and not, for example, for their own benefit, even where the company does not suffer any loss. A director may not put himself in a position

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