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s175 CA 2006 : Is London Mashonaland still good law?

What is the current law surrounding multiple directorships? As far as I am aware, London Mashonaland allowed it and was approved by HL in Bell v Lever Bros but was casted in doubt by Sedly LJ in In Plus Group v Pyke. However has s175(7) effectively disallow all multiple directorships?

Reply 1

Forum User

I haven't done Company Law yet but surely it happens all the time that someone is an executive director of one company and a non-executive director of another? So I suppose that you are talking only about executive directorships? Even then, I can't see why one shouldn't be allowed to be an executive director of multiple companies if:

1) The companies aren't in fact in competition and there is no sensible prospect of a conflict between the two duties;
2) If the companies are in competition but one has the fully informed consent of both companies (by analogy to other cases on fiduciary duties);
3) If one is an executive director but 'in name only' because in reality one has no influence at all in one of the companies (and so again there is no sensible prospect of a conflict because one has no duties to one of the companies).

But as I say, I haven't done Company Law yet !

Reply 2

Jerdifferential

Yes but the main issue as in most cases is that the companies are in fact in direct competition as in London Mashonaland without the director's consent.