Burnell v Trans-Tag Ltd: Directors’ Duty to Avoid Conflict of Interest and Its Application on Former Director

Abstract

A recent landmark Burnell v Trans-Tag Ltd validated that the former director of a company is bound by the duty to avoid conflict of interest and his fiduciary duty will breach when he exploits the property, opportunity, and information that he acquired during his tenure of directorship in a company. Further, the combined effect of sections 175 and 170(2)(a) of the Companies Act 2006 has been explored in the case. This comment scrutinises and highlights this recent noteworthy development in the English courts’ jurisprudence on directors’ duty to avoid conflict of interest