Regulating the Pipeline: Use of Company Information by Former Directors

Show simple item record Batty, Robert en
dc.contributor.editor Watson, S en 2012-02-28T00:59:26Z en 2009-06 en
dc.identifier.citation New Zealand Business Law Quarterly 15(2):80-104 Jun 2009 en
dc.identifier.issn 1173-311X en
dc.identifier.uri en
dc.description.abstract The use of information by company directors presents a tension between a director’s individual freedom to use information as a catalyst for the exploitation of commercial opportunities and a director’s strict duty of loyalty to his or her company. In the context of a departing or former director this tension raises difficult questions regarding directors’ fiduciary duties. When, if at all, is a director able to make use of information acquired as a director? Section 145 of the Companies Act 1993 prohibits directors misusing company information gained in their capacity as directors or employees. However, there is a gap in respect of departing and former directors. It is argued that s 145 should not be seen as an exclusive source of the law. Rather, it is suggested that a correct understanding of the underlying jurisprudence relating to the fiduciary duties of directors can help fill the gaps in s 145. While New Zealand cases to date have not given rise to any significant problems in judicial approach to directors making use of company information, the current law leaves considerable room for unpredictability with respect to former directors. In this article a more cohesive conflict of interest and duty framework is proposed, together with possibilities for legislative amendment. en
dc.publisher Brooker's en
dc.relation.ispartofseries New Zealand Business Law Quarterly en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.title Regulating the Pipeline: Use of Company Information by Former Directors en
dc.type Journal Article en
pubs.issue 2 en
pubs.begin-page 80 en
pubs.volume 15 en
dc.rights.holder Copyright: Brooker's en en
pubs.end-page 104 en
dc.rights.accessrights en
pubs.subtype Article en
pubs.elements-id 101286 en Law en Faculty Administration Law en
pubs.record-created-at-source-date 2010-09-01 en

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