8.
Re: Board members and business owners Nov 13, 2007 4:54 PM
Try this one, Maybe this answers your question
Directors must act honestly and in
bona fide. The test is a subjective one—the directors must act in "
http://en.wikipedia.org/wiki/Good_faith in what they consider is in the interests of the company...
However, the directors may still be held to have failed in this duty
where they fail to direct their minds to the question of whether in
fact a transaction was in the best interests of the company.
In relation to a
http://en.wikipedia.org/wiki/Company_%28law%29, a
director
is an officer (that is, someone who works for the company) charged with
the conduct and management of its affairs. A director may be an inside
director or an
outside, or independent, director.
Theoretically, the control of a company is divided between two bodies: the board of directors, and the
http://en.wikipedia.org/wiki/Stockholder in
http://en.wikipedia.org/wiki/General_meeting. . In small private companies, the directors and the
shareholders will normally be the same people, and thus there is no
real division of power. .
LUCKIEST
