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Business
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| Number of pages / Number of words: |
10 / 2582 |
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In this case the principle was established and has just been altered to incorporate any "practicalities" of the certain circumstances, otherwise every single time that a transaction was to be made that the directors "have the slightest personal interest" it may be stated different in the articles.
In Regal (Hastings) Ltd v Guillver 1942 it illustrates the director's duty not to make a secret or unauthorised profit , even though in this case the directors had acted bona fide throughout the whole procedure, the fact that it was their own money and it did not belong to Regal...
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It was not that the directors had took an corporate opportunity away from them in their mines because they knew of the company financial position and they could not afford the shares. It is evident also that the company did not incur any loss. This however did not seem to be the main consideration in accord to Lord Russell stated that the point of law was "The rule of equity which insists on those, who by use of a fiduciary position make a profit, in no way depends on fraud, or absence of bona fides or upon such questions or considerations as whether profit would or should otherwise have gone to the plaintiff, or whether the profiteer was under a duty to obtain the source of the profit for the plaintiff, or whether he took a risk or acted as he did for the benefits of the plaintiff has in fact damaged or benefited by his action...
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