The Companies Act 2006, which started to take effect last year and which will be fully in place by October 2008, codifies directors' duties into a statutory statement. The UK government hopes that the Act could bring benefits of L30 million to L105 million per year as it hoped that directors will no longer, or be less likely to, need to take advice on these areas. The seven general duties set out in ss 170 to ss 182 of the Act with particular reference to the new additions introduced by the Act are: 1. Duty to act within their powers. 2. Duty to promote the success of the company. 3. Duty to exercise independent judgment. 4. Duty to exercise reasonable care, skill and diligence. 5. Duty to avoid conflicts of interest. 6. Duty not to accept benefits from third parties. 7. Duty to declare an interest in a proposed transaction or arrangement with the company.
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