Company directors must promote the success of the company. A board of directors are required to work together to achieve this aim. In doing so, directors must exercise reasonable care, skill and diligence and independent judgment.

In order to comply with these requirements and responsibilities, directors need, and are entitled to, access to all company documents and information.

However, directors cannot use company confidential information otherwise than for the benefit of that company. Any attempt to do so will be in breach of the duty of confidence a director owes to the company. The remedies available to the company for such a breach include damages, delivery up and destruction of material, an account of profits or an injunction.

Directors can fall out and professional relationships can break down. When that happens, it can often lead to one director trying to restrict another director from accessing key company information. This may appear to be a viable option to prevent company information from being used as a leverage in a dispute or to set up a competing company, but it is not.

A director cannot prevent another director from having access to company information and documents. As a director, you have a right to access and take copies of company information.

A director who is refused access to company documents by another director will be entitled to get a court order that the other directors provide access to information and documents. This can be costly and time consuming.

In any event, a court will grant access to documents requested by a director unless it can be demonstrated that the director who wants those documents is only seeking access for an improper purpose.

Geldards recommends that access to company information should not be constrained unless absolutely necessary and to prevent improper use of company information. Disputes over such issues can be expensive and take up management time that could be used promoting the company.

If you are concerned about your access to company information or that a fellow director is preventing you from seeing company documents, the commercial dispute resolution team at Geldards can help. We can advise you on what steps to take to protect your position and fulfil your director duties.

If you’d like further advice on this issue, please do not hesitate to contact a member of our Dispute Resolution Team.

RELATED:   £2M COMPENSATION AWARDED TO AN INVENTOR IN THE “OUTSTANDING BENEFIT” CASEEXPERTISE - DISPUTE RESOLUTION


MORE FROM THE ADVICE CENTRE

News

Car Industry Produce Key COVID-19 Guidance for Dealerships
03/06/2020
On 11th May 2020, the Government published its roadmap for the lifting of COVID-19 restrictions. This included plans to allow Car Dealerships to reopen from the 1st June.
more...

Events

Geldards Upcoming Webinars
26/09/2016
To support you through these unprecedented times, Geldards have been holding regular webinars on legal topics relevant to navigating the Covid-19 crisis.
more...

Blogs

CJRS Tapering Down
01/06/2020
The final date to start furlough for any employee will be 10 June. This is because the government have announced that the Coronavirus Job Retention Scheme (the Scheme) will close to new entrants on 30 June 2020.
more...

Publications

Salus – Wealth and Family Protection
11/03/2020
Salus Magazine is brought to you by the Private Client team at Geldards to help you protect your wealth and family.
more...

Content Contacts

SOLICITOR

Madeleine Jordan

MADELEINE JORDAN

Solicitor, Cardiff

+44 (0)29 2039 1829
email
more...

PARTNER

Michael Evans

MICHAEL EVANS

Partner, Cardiff

+44 (0)29 2039 1736
email
more...