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Section 173: Duty to exercise independent judgment

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 10: A company's directors — Chapter 2: General duties of directors

A director of a company must exercise independent judgment.

This duty is not infringed by his acting—

in accordance with an agreement duly entered into by the company that restricts the future exercise of discretion by its directors, or
in a way authorised by the company's constitution.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.