Directors' Duties and Derivative Claims Quiz

Under which section of the Companies Act 2006 can a shareholder bring a derivative claim on behalf of the company?

• Section 40

• Sections 171 to 177

• Sections 260 to 264

• Section 41

What is the duty under section 171 of the Companies Act 2006?

• Duty to avoid conflicts of interest

• Duty to exercise independent judgement

• Duty to promote the success of the company

• Duty to act within powers

Which section of the Companies Act 2006 requires directors to promote the success of the company?

• Section 175

• Section 172

• Section 173

• Section 174

What does section 173 of the Companies Act 2006 require directors to do?

• Not accept benefits from third parties

• Declare an interest in proposed transactions

• Avoid conflicts of interest

• Exercise independent judgement

Which section of the Companies Act 2006 deals with the duty to exercise reasonable skill, care, and diligence?

• Section 177

• Section 176

• Section 175

• Section 174

Under which section must directors avoid conflicts of interest?

• Section 175

• Section 171

• Section 172

• Section 173

What is the duty under section 176 of the Companies Act 2006?

• Duty to declare an interest in proposed transactions

• Duty to act within powers

• Duty not to accept benefits from third parties

• Duty to promote the success of the company

Which section requires directors to declare an interest in proposed transactions or arrangements?

• Section 172

• Section 177

• Section 171

• Section 173

What does section 40 of the Companies Act 2006 state about the powers given to directors?

• They must not exceed the powers given to them by the company.

• They must avoid conflicts of interest.

• They are deemed to be free of any limitations under the company’s constitution when dealing with third parties acting in good faith.

• They must promote the success of the company for the benefit of the members as a whole.

Which section of the Companies Act 2006 does not apply when the third party is a director of the company?

• Section 41

• Section 40

• Section 176

• Section 177