LAW

General Law Rules



Abstract

In this research paper we have taken up the subject of general law conflict rule and we will investigate the subject from all its aspects. This will help us to analyse it thoroughly and understand when and how it should be dealt with appropriately. We will try our best to anaylse all integral details related to the topic of discussion so that it gets clear and the knowledge that is obtained is beneficial.

General Law Rules

Introduction

The objectives of this research project are to get into the details of the topic of research which is about the general law conflict rule and how it works along according to companies. To conduct thorough research over the topic we will go through various journals and books that can give us a fair idea of what the rule is all about and how does the rule apply to transactions within the company and on corporate property, information and property. Let us review all that we could collect over the subject and analyse it.

Literature Review

General Law Conflict Rule

According to the general law conflict rule, as fiduciaries, the company directors may or may not want to be part of a position in which their benefits and obligations have a disagreement with all the duties that are performed, which they are obligated to handle for the company. The law captures the point of view that there should not only be high faith that is the value of trust but also should be noticeably zealous patrols for the how the directors behave. This would not at all permit the directors to flee away from accountability as he can easily declare that his decision had all logics and was well grounded. Conventionally, the law has divided these conflicts related to duty and interest amongst three different sub-divisions (Lowenstein, 2003, pp. 63-78).

Transactions with the Company

According to law, where a director comes to enter into a contract with an organization, there is always a major conflict amidst the interest of the director along with what his duty or obligation is to the company. This is because it is important that the company can get the most out of that particular transaction. This rule has to be taken into consideration by all means. It is a very strict rule, which needs to be enforced, even when the conflict that is linked to interest or duty may be theoretical. The directors may be asked to drive out all sorts of individual benefits which come up from it.

As per law, a corporate body can only take action through agents, and it is, certainly, the duty of such agents to take action as paramount in order to support the interests of the corporation with whose affairs they are working along with. Such agents have the utmost duties to set free the fiduciary nature as far as their principal is concerned. And it is a universal rule that that no one, which is obligated to such duties may discharge, or may be ...