Into the conduct of directors

Lord Denning

in The Due Process of Law

Published in print January 1980 | ISBN: 9780406176080
Published online March 2012 | e-ISBN: 9780191705113 | DOI:
Into the conduct of directors

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The system of company law is the universal medium of business. The law has let down a curtain which conceals the goings on of the directors and managers of a company. Beneath this curtain all sorts of fraud can be perpetrated — on customers, on creditors, and on shareholders. The only machinery so far provided by Parliament is for the Department of Trade to appoint inspectors to hold an inquiry. The inspectors usually come from the Queen's Counsel. They have to investigate all that the directors and managers have done and they are asked to report upon it. These inquiries take years, involve great expense, and at the end the inspectors are criticised. This matter is of such importance and the author states that he has endeavoured to lay down the principles on which inspectors should act.

Keywords: customers; creditors; shareholders; Parliament; Department of Trade

Chapter.  2690 words. 

Subjects: Constitutional and Administrative Law

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