When the Companies Act 2006 came into force, company directors
were deluged with advice, solicited and unsolicited, about the
directors duties provisions. It does no harm to be reminded from
time to time that there can be consequences for a director if he
fails in his duties.
Case facts
One such reminder is the Appeal Court case of Towers v
Premier Waste Management Ltd [2011] EWCA Civ 923. The basic
facts were straightforward. In 2003 Mr Towers, who was then a
director of Premier Waste Management, borrowed an excavator and a
dumper for his own personal use from a Mr Ford who was a customer
of the Company. This was arranged by Mr Towers through a manager in
his division of the Company. Mr Towers did not tell his board about
the arrangement. He used the equipment for approximately 6 months
in 2003 but only returned it in 2008 after Mr Ford had invoiced
Premier Waste Management for £45,825 hire charges.
