UK Corporate Law

UK Corporate Law Assignment question:

“… I am satisfied that, by failing to take this step the Director Defendants failed to act in a manner which was required to protect SML’s best interests and I do not consider that it is sufficient for the Director Defendants to say that the responsibility for obtaining that advice lay with the shareholders themselves. This is to ignore the fact that SML was a separate legal entity in its own right and it was SML’s assets which were being transferred and restructured under the terms of the Transaction. No steps were taken by the Director Defendants to correct this deficiency before completion of the Transaction.”

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Mr Justice Trower, Stubbins Marketing Limited v Stubbins Food Partnerships Limited (In Administration) [2020] EWHC 1266(Ch) at 427.

Based on the quotation above, critically discuss directors’ duties to promote the success of the company under s.172 Companies Act 2006 in the United Kingdom.

Write a report of 2,500 words using OSCOLA citation style. 20 references needed and at least 10 of them are case law references, or more.

The candidate needs to demonstrate the following capabilities:

Able to evaluate and reflect on key areas of corporate law and corporate governance;
Demonstrate a detailed understanding of the underlying legal principles of corporate law and corporate governance;
Evaluate the role of the government and governments in regulating corporate activity;
Demonstrate an understanding of the wider socio-economic context in which corporate law operates; and
Demonstrate an understanding of other systems of corporate law and corporate governance through comparative analysis with the UK.

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