Have a question?
033 3772 0409

Breach of Director Duties

Duncan Lewis Litigation Solicitors – Breach of director's fiduciary duties


Directors have certain obligations under the Companies Act 2006, which they must fulfill – and failure to do so can result in them being removed by shareholders or even being disqualified from being a director.


The Companies Act Sections 171-178 sets out the duties and obligations of a director, which include:

  • To act in accordance with the company’s constitution, and only exercise powers for the purposes for which they are conferred
  • To act in the way which, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole
  • To exercise independent judgement
  • To exercise reasonable care, skill and diligence
  • To avoid conflicts of interest
  • To declare interest in proposed transaction or arrangement.

A fiduciary duty involves a relationship in which the fiduciary – eg a director of a company – holds a position of trust in the management of monies or property for a shareholder (called a “principal”).


If the relationship between a fiduciary and principal breaks down or the fiduciary fails to fulfil its legal duties, the principal may be able to make a claim for damages.


This might be the case if, for example, the director of a company uses his or her position to benefit personally or financially from their position without declaring the benefit.


In such cases, the courts can award damages – and any financial asset or other property gained as a result of a breach in fiduciary duties is likely to be awarded to the company from which the benefit derived.


It is important to take legal action as soon as possible in a case involving a breach of fiduciary duties – Duncan Lewis commercial litigation solicitors can advise at any stage of a dispute, including advising shareholders on bringing a claim, or advising director on defending a claim being brought against them by shareholders.


Duncan Lewis can also advise in cases where illegal activity may have taken place in a fiduciary breach.


For expert legal advice on commercial and company law and Breach of Fiduciary Duty, call Duncan Lewis Commercial Litigation Solicitors on 0333 772 0409.


For all Civil Litigation related matters contact us online now.Contact Us

Call us now on 033 3772 0409 or click here to send online enquiry.
Our Services
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is 143-149 Fenchurch St, London, EC3M 6BL. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.