Why do directors need to have their duties spelled out in statute Essay

Why do directors need to have their duties spelled out in statute - Essay Example directors must promote the success of the company for the benefit of its members rather than benefiting other group’s interests, but in the same way, have to observe the interests of other groups that contribute to the success of the company such as suppliers. Enshrining the regulations as law in spelling the director’s duties, is meant to formulate a favourable corporate legal environment that offer ease of access to the corporate form, minimum interference with the company management and appropriate investor protection for the overall success of the company (Companies Act 2006, Section 170-177). Advantages The codification of directors’ duties provides a clear working ground that promotes a patent definition of their roles in ensuring that the company achieves greater heights of prosperity and growth. Right from management roles and integrating issues within the market under which the company competes the law provides that directors as trustees should act in the interest of the company’s success. They should have regard to all relevant considerations and highlighting areas of particular importance that will steer the company in heights of growth. Integrating and widening the enterprise culture is an increasing major policy that is upcoming in the United Kingdom. This however is enshrined in coming up with suitable legislation that will govern the directors of business companies in their exercise for the duties. This will help in providing a successful platform for initiatives in businesses to elevate the UK business environment into global standards and making it the best place to do business. The modernization of the company law is a significant drive to facilitate and enhance the UK business enterprises to be competitive in the entire Europe and around the world appropriate investor protection and managerial freedom Directors as Managers of the companies in the UK are expected to ensure that the proposed intervention legislation are modelled to