Rough Draft for partial fulfilment of Corporate Law-II

On

FIDUCIARY OBLIGATION OF DIRECTORS OF THE

COMPANY

Submitted To:-

Mrs. Nandita. S. Jha

Faculty of Corporate Law -II

Submitted By: -

Adhish Prasad

Roll No. 904

4th Year B.A., LL.B. (Hons)

INTRODUCTION
A fiduciary duty of a director is a duty which is derived from the principle that a director
must be loyal to his company. Fiduciary duties apply to directors not only as regards the
decisions they take in the boardroom, but also whenever a director is acting as an officer of
the company or in relation to the companys assets or affairs. Any breach of any fiduciary
duty will attract an equitable remedy.

An officer or director of a company plays several roles. He may be someone who manages
the company. Or he may be someone who manages a particular area of a company, project or
program. For instance, a person B may be a director of human resources in a company.
Now, he only heads a particular division, but he is an officer or director of the company.
Thus, he owes certain fiduciary duties to the company.

A fiduciary duty is the highest standard of care expected from a person. This applies when he
is in a position of power. It means that he must not use his powers to make profits for
himself. The nature and type of fiduciary duties change from one place to another.

AIMS AND OBJECTIVE-

The aim and objective is to examine the various Fiduciary duties/obligations of directors of
the company.

HYPOTHESIS-

Fiduciary duties/obligation ensure and secure that the directors of companies always keep the interests of the
company and its stakeholders, ahead and above their own personal interests.

RESEARCH METHODOLOGY-

Researcher shall emphasize and use the doctrinal method to prepare this project topic.

SOURCES OF DATA-
PRIMARY SOURCES:- SECONDARY SOURCES:-

1. The Companies Act, 2013 1. Books on Corporate Law

2. Websites

3. Journal

4. Magazines

TENTATIVE CHAPTERISATION-

1) Introduction
2) Legal Position of director
3) Various Fiduciary duties/obligations of directors of the company
4) Breach of fiduciary obligation of director of company
5) Conclusion

BIBLIOGRAPHY

BOOKS: -

Dr. Rega Surya Rao Lectures On Company Law, 2nd Edition, Asia Law House
Publication
G.K. Kapoor & Sanjay Dhamija Company Law, 19th Edition, Taxman Publication
Avtar Singh Company Law, 16th Edition, Eastern Book Co. Publication

WEBSITES.

1. http://taxguru.in
2. http://www.caclubindia.com
3. https://www.taxmanagementindia.com
4. www.legalserviceindia.com