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As an act, delegation is permitted and indeed necessary in the smooth running of larger organisations. A person cannot be expected to do everything in a medium to large sized company.
The Courts are however clear on this point. Whilst directors can delegate functions to other people in the management chain, such delegation does not absolve a person from a duty to supervise the discharge of the delegated function. Indeed, the responsibility, should things go wrong, rests not just with the director who delegated the task. It rests with the entire board of directors if there is one. It could constitute a director disqualification breach.
When delegating a function, role or task, a director should:-
However, it is important to realise that at all times the directors do have to have some trust in the employees of the company, as any failures by them are ultimately the directors’ responsibilities.
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Our expert team of director disqualification solicitors at Francis Wilks & Jones are here to help you with any type of legal question. Contact one of our expert friendly director disqualification lawyers now for your confidential consultation. Whatever your needs, we can show you examples of similar cases we have successfully helped our clients with.
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