The general rule of thumb is that directors owe their duties to act in
the interests of the company and its members as a whole or, where the company
has a purpose other than the benefit of its members, the duty is to act in a
way to pursue that purpose. The latter will apply to social enterprises and
charitable companies and many schools. This can cause difficulty and
uncertainty when the company is in financial difficulty.
Access all our articles and search the provider directory for free.