Companies Act 2006 in corporate governance

The companies act 2006 incorporates within it
specific duties of directors. Among other things 172 lays down a specific duty
on a company director to:

·        
Act in
the way he considers, in good faith, would be most likely to promote the


success of the company for the benefit of its members as a whole and to have
regard to:

·        
The
interests of the company’s employees;
·        
The need
to foster the company’s business relationships with suppliers, customers and
others;
·        
The
desiratiability of the company maintaining a reputation for high standards of
business conduct.
For the first time there is a specific prevision,
in law, for the directors to have regard to the interests, not only of those
who have invested in the company over which they have day-to-day control but
also of others, employees, customers, suppliers and indeed-in its injunction to
maintain a high standard of conduct-anyone the business comes into contact with
in the course of its activities.
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