The paper “ Breached Duties by Directors of Builders Hardware” is an actual example of a case study on management. Corporate governance is always considered back born of the success of any company. Therefore, there is greater interest to oversee how the organization is governed by a board of directors in order to avoid issues of inefficiency in management. Directors of the company are, therefore, expected to have fiduciary obligations in running the organization (Harris, 2013). That is ensure that they are running an organization for the benefit of the shareholder and their interest will come thereafter.
Directors are expected to act in good faith by putting the interest of the shareholders ahead, exercise due care in carrying out organizational duties, and use their powers well in the organization (Harris, 2013). In order to protect shareholders, there is active in corporate law 2001 that stipulates directors’ duties and responsibilities in corporate governance. These duties and responsibilities act as a work contract for the directors therefore, failure to observe any of these acts will lead to a breach of duty by directors to the shareholders who appointed them to run the organization on their behalf.
It compels the director to act bona fide in the interests of the shareholders, not to act for the wrong purpose, to take care and diligence in discharging their duties, to retain prudence, to avoid conflicts of interest in the organization (or declare their conflict of interest), not to disclose confidential information of the organization without the consent of relevant authorities and lastly, not to abuse organization opportunities that come in the course of business operation, for example, taking a commission from a tender awarded to another company without disclosing it (Fisher, Anderson & Dickfos, 2009). According to the case scenario provided for the Builders hardware, H import hardware and Powertools Ltd illustrates fully on the breach of most of the common laws of directors' duties by Builders Company.
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