Publication Type
Case note/Digest
Version
acceptedVersion
Publication Date
9-2017
Abstract
The Hong Kong Court of Final Appeal has utilised a ‘scope of business’ inquiry to delineate the boundaries of the no-conflict rule for the company director. Such an inquiry is directed at discerning the realistic ability of the company to exploit any particular business opportunity and a strict capacity approach is eschewed, at least where the no-conflict rule is concerned. The decision is premised on a bifurcation between the no-conflict and no-profit rules, suggesting that the tests to determine breach of these fiduciary rules are not necessarily the same, thus permitting a more nuanced consideration of directorial breaches.
Keywords
Directors’ duties, Hong Kong, No-conflict and no-profit rules, Scope of business
Discipline
Business Law, Public Responsibility, and Ethics | Commercial Law
Research Areas
Corporate, Finance and Securities Law
Publication
Modern Law Review
Volume
80
Issue
5
First Page
941
Last Page
954
ISSN
0026-7961
Identifier
10.1111/1468-2230.12294
Publisher
Wiley
Citation
KOH, Pearlie M. C..
A director’s duty of loyalty and the relevance of the company’s scope of business: Cheng Wai Tao v Poon Ka Man Jason. (2017). Modern Law Review. 80, (5), 941-954.
Available at: https://ink.library.smu.edu.sg/sol_research/2301
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/1468-2230.12294