10@12 Webinar : Corporate Litigation Essentials: The Proper Purpose Duty
10th January 2025 1200
This session considers the duty of directors to exercise powers only for the purposes for which they are conferred under s. 171 CA 2006. It looks at what the proper purpose duty is, when it comes into play, the applicable test, and procedural routes for challenging improper purposes. This webinar will be presented by Michael Todd KC & Philip Morrison.
10 points that will be covered :
1. What is the proper purpose duty and how does it arise?
2. Why do practitioners need to know about it?
3. In what scenarios does the duty come into play?
4. How does the duty fit with duties of good faith?
5. The test (1): the purposes for which the power can be exercised
6. The test (2): the directors’ purpose
7. The test (3): multiple purposes
8. The test (4): an improper but legitimate purpose?
9. What are the procedural routes for challenging improper purposes?
10. Does the duty apply in all jurisdictions?
