Question
reword to sound better: Jean J du Plessis in the journal article 'Directors' duty to act in the best interests of the corporation: 'Hard cases
reword to sound better: Jean J du Plessis in the journal article 'Directors' duty to act in the best interests of the corporation: 'Hard cases make bad law' (2019) 34 Aust Jnl of Corp Law 3' analyses show courts in both the United Kingdom and Australia have interpreted directors duties as extending to the best interests of the corporation as a whole, with "the corporation" referring to the shareholders as a collective entity. This article examines these interpretations and explores whether they create conflicting duties for directors, leading to legal complexity and uncertainty.
Analyzing cases such as 'Greenhalgh v Arderne Cinemas Ltd' in the UK and 'Ngurli Ltd v McCann' in the Australian High Court, the article delves into the implications of these interpretations on directors' duties. It emphasizes the significance of the corporation as a distinct legal entity and argues that directors are obligated to prioritize the interests of the corporation as a separate entity. Consequently, directors cannot solely prioritize shareholder interests unless they align with the best interests of the corporation as a separate legal entity. The article also considers the representation of various third-party interests within the corporation and suggests that the extent to which these interests must be considered depends on the specific circumstances.
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