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Where court action is taken against a director for breach of duty any compensation awarded by the court is payable to:
The Board of Directors.
The shareholders.
The company.
The creditors.
Directors' duties are owed to the company as a whole and are not owed to individual shareholders or other stakeholders such as employees and creditors. It is a company that decides whether or not to take action against a director for breach of duty and any damages or compensation received as a result are payable to the company.
By: Srishti Gupta ProfileResourcesReport error
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