The emerging critiques toward the conception of directors' duties

Hussin@Mohamad, Ab Rahman and Kamaliah, Salleh (2016) The emerging critiques toward the conception of directors' duties. In: ICLAS 2016, 18-19 Apr 2016, THAILAND.

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Abstract

It has long been established that directors and other officers owe their duties to the company alone. Originated from common law, this rule, although have been strictly applied by the courts in Malaysia to draw the borderline between the interests of a company and its members, it does not mean that directors can simply act without taking into account the interests of members who invested their monies into the company‘s capital. This study aims to investigate the reasons for the critiques against the rule arise. The methodology used in this study is an analysis of the literature review, such as books, articles, and court cases related. The study exposes various views highlighted by the experts commenting on the rule and its application in law, as well as the needs for the rule to be revisited.

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