Company/Business/Partnership Law; Companies Act

Critically analyse the following statement:

“The introduction of directors’ duties into the Companies Act was meant to clarify the obligations that directors have to undertake every day and set the standard of commercial morality which shareholders and others have a right to expect from those they place their trust in. Yet, its most significant, albeit controversial aim may have been to align what is good for the company with what is good for society at large. There are two possible ways of looking at the statutory restatement of directors’ duties: on one hand, that it simply codifies the existing common law obligations of company directors; on the other hand, that s.172 marks a strong departure in articulating the connection between the company and the stakeholders that deal with the company.”

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