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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Breach of directors duty
S232 CA06 provides that any provision to exempt a director from or idemnify him against any liability for Breach of duty is void.
S239 CA06 states that the company can ratify a Breach of duty by passing an ordinary resolution
Please tell me if company can ratify it then it will exempt a director from liability…..which act we should apply in aswering the question in examination?
I see no contradiction between the two sections of the Companies Act
It is not available to include within any document a provision that exonerates a director from liability in the event of that director committing a breach of duty
So, you cannot have entrenched within the constitution any provision that effectively allows the director to freely breach duties without any worry of an adverse comeback
However, should a director commit a breach of duty, it IS available for the shareholders to assess the situation and, if the shareholders feel so inclined, they may excuse the director from liability
OK?