Breach of Director’s Duties

Breach of Director’s Duties

Where a director is found to be in breach of his duties, consequences or remedies available to the affected company include:

• Removal from office: shareholders of the company can pass an ordinary resolution to remove the director

• Interim injunction: the affected company can take out injunction proceedings to prevent any further loss or damage due to a breach of director’s duties

• Setting aside transactions: If the director has entered into transactions which are in conflict with or contrary to the interests of the company, application can be made to the court to set aside those transactions

• Restoration of company property: If the wrongful director has taken hold off any property belonging to the company, the company may apply to the court to seek restoration of that property

• Damages or compensation for financial losses incurred: Where the company has suffered loss as a result of a director’s breach of duties or misconduct, a court may order the director to compensate the company for the damages or financial losses suffered

 

For legal advice and services on duties of director or consequences or remedies for breach of director’s duties, please contact CHOW & CHEUNG, Hong Kong Solicitors & Notary Public [ Tel: +852 2856 3799 or Email:cac@ccsn.hk]

Website:  www.ccsn.hk

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