UK Companies Act 2006
Part 10 Chapters 1 and 2: Directors (appointment, notification, identity verification) and the general duties – UK Companies Act 2006

UK Companies Act 2006 171: Duty to act within powers

What does 171 require?

A director must act in accordance with the company's constitution and only exercise powers for the purposes for which they are conferred. The general duties in sections 171 to 177 are owed to the company, apply to shadow directors where the corresponding common law rules apply, and are interpreted and applied in the same way as the common law rules and equitable principles they codify (section 170). Breach has the civil consequences the common law provides (section 178).

Maintained by Gerard Blokdyk

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