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Hello MR Ken,
NIce to start dealing with you.
For the Rail company I have seen in the model answer for the Task1 A i)
for the agency relationship between parties and talked about there is an agnecy relationship between the board and customer or tax payers .
Is it correct that there is an agnecy relationship between the board and the customers.Thanks.
I think that is correct. Certainly, the directors/board run the company on behalf of its shareholders and there is a fiduciary duty there (ie to act in the best interests of the shareholders). However, given that the company is offering a very valuable, perhaps essential service, to the travelling public (customers), I think there is alco an agency relationship there. For example, the public would expect trains to be safe and to run on-time and would expect the board to fulfil those expectations on their behalf.
Although often in law the board’s responsibilities are confined to shareholders, increasingly it is recognised that they have a wider responsibility to other stakeholders.
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