Publication Type

Journal Article

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

Commercial 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: No OnlineOpen

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org./10.1111/1468-2230.12294

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