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Commentary

56 Provisions exempting directors from liability

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

56 Provisions exempting directors from liability

| Commentary

56 Provisions exempting directors from liability

In general, any provision (whether contained in the company’s articles, in a contract with the company or otherwise) which exempts a director (to any extent) from liability in relation to the company for negligence, default, breach of duty or breach of trust is invalid1. In addition, subject to certain exceptions, the Companies Act 2006 invalidates any provision by which a company directly or indirectly provides an indemnity (to any extent) for a director of the company (or of an associated company) in relation to any of the above liabilities2.

There are certain exceptions to this

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