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Which of the following is INCORRECT in relation to directors' duties?
i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take-over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.
ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.
iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.
Suggested Answer: B
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42 comments · newest first
GE
Gerald
11 months ago
Sounds fishy, how can they act unlawfully and still be compliant?
JE
Jeannetta
11 months ago
I thought directors had to prioritize shareholder interests.
OL
Ollie
12 months ago
Wait, can they really breach duties and still follow the Code?
AL
Alexis
12 months ago
Totally agree, that's how it works!
ER
Ernie
1 year ago
Directors can legally allot shares if allowed by the company's constitution.
WI
Willow
1 year ago
I practiced a similar question before, and I think (i) is the one that could be incorrect. It just feels off to me, but I can't pinpoint why.
DE
Derick
1 year ago
I feel like (iii) is definitely true since directors owe their duties to the shareholders, but I can't recall if it's enforceable by the company itself.
RE
Refugia
1 year ago
I think (ii) might be the tricky one here. We talked about how compliance with the UK Corporate Governance Code doesn't always mean they're acting within their duties.
CA
Caitlin
1 year ago
I remember discussing directors' duties in class, but I'm not entirely sure if (i) is correct or not. It seems like it could be lawful if they have the power.
SI
Silvana
1 year ago
This is a good test of my knowledge on directors' duties. I'll need to apply the legal principles carefully to identify the incorrect statement.
DO
Dolores
1 year ago
The key here is understanding the relationship between directors' duties and the UK Corporate Governance Code. I'll need to think about how those two elements interact.
FL
Florinda
1 year ago
Okay, I think I've got a handle on this. Let me walk through the options and see if I can spot the incorrect one.
JE
Jerilyn
1 year ago
Hmm, the wording on these options is tricky. I'll need to carefully analyze each one to determine which is incorrect.
KA
Kayleigh
1 year ago
This question seems straightforward, but I want to make sure I understand the nuances of directors' duties before answering.
EV
Evelynn
1 year ago
The key here is understanding the difference between the legal requirements and the governance code. I think the second statement is the one that's incorrect, since directors can breach their duties even if they're complying with the code.
FR
Frederica
1 year ago
Wait, I'm a bit confused. Aren't directors' duties always owed to the shareholders? I'm not sure about that second statement.
ME
Merrilee
1 year ago
I feel pretty confident about this one. I think the answer is (ii) and (iii) only, since directors can breach their duties even if they're following the governance code, and their duties are owed to the company, not just the shareholders.
DO
Dortha
1 year ago
Okay, let's see here. The first statement seems a bit iffy, but I'm not totally sure. The second one is the one that's really got me stumped.
PE
Pearlie
1 year ago
Hmm, this question seems tricky. I'll need to carefully read through the options and think about the key principles of directors' duties.
EL
Eladia
1 year ago
Hmm, I'm not too sure about this one. The question mentions a large amount of historical data, so I'm thinking the SOAP API or an AppExchange package might be better options to consider. I'll need to review the differences between the choices more carefully.
BR
Brice
1 year ago
The question about the data center location is a good catch. I think that's a key factor in determining their GDPR compliance requirements. I'll make sure to consider that carefully in my answer.
DO
Dottie
1 year ago
This seems like a pretty standard repository management question. I think the key is using the repos.py command with the right options. I'll make sure to read through the answer choices carefully and select the correct steps.
MA
Marget
1 year ago
Hmm, I'm not sure about (ii) and (iii). The governance code and shareholder duties can be a bit of a minefield. Better double-check my notes before answering this one.
KA
Kati
1 year ago
User 3: Yeah, (ii) doesn't sound right. Better make sure before answering.
JE
Jerry
1 year ago
User 2: I agree, (ii) seems off. They have to follow their duties and the code.
KR
Kristel
1 year ago
User 1: I think (ii) is incorrect, directors can't breach their duties and still comply with the code.
EL
Elenore
2 years ago
Haha, this question is a real test of whether you've been paying attention in your corporate law classes. I'd say (ii) and (iii) are the tricky ones - gotta keep those directors on their toes!
LI
Lindsey
1 year ago
D) (ii) and (iii) only
SH
Sharita
1 year ago
C) (ii) only
ER
Ernie
1 year ago
B) (i) and (ii) only
AD
Adell
1 year ago
A) (i) only
AJ
Aja
2 years ago
Hmm, that's a good point. But I still think option A is the best choice.
YU
Yuriko
2 years ago
I disagree, I believe option B is correct because directors can still breach their duties while following the UK Corporate Governance Code.
BE
Ben
2 years ago
I agree, (i) is the wrong answer here. Trying to entrench your position as a director by manipulating the share structure is a big no-no.
OC
Octavio
1 year ago
User 2
VA
Vallie
1 year ago
User 1
AJ
Aja
2 years ago
I think option A is correct because directors can allot shares if they have the legal power.
AL
Albina
2 years ago
Option (i) is clearly incorrect. Arranging a share issue to prevent a takeover is a classic example of directors acting in their own interests rather than the company's. That's a breach of their duties.
RE
Renea
1 year ago
Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.
KR
Krystina
1 year ago
C) (ii) only
AL
Allene
1 year ago
Option (i) is clearly incorrect. Arranging a share issue to prevent a takeover is a classic example of directors acting in their own interests rather than the company's. That's a breach of their duties.
JO
Johnna
2 years ago
A) (i) only