Bray v Ford [1896] AC 44

The necessity for the director to avoid conflict of interest arises from the position he/she occupies in the company. This is highlighted in one of the comments made in the case of Bray v Ford [1896] AC 44 House of Lords.

Bray v Ford [1896]

Case Facts:

Mr Bray held the position as the governor of Yorkshire College. Moreover, Mr Ford was the vice-chairman of the governors, and the solicitor or the college. 

Mr Bray send Mr Ford a letter which was also read by others indicating that the Mr Ford was financially advancing himself as he was the solicitor and the vice-chairman of the governors. 

Case Issue:

The issue of the case of Bray v Ford [1896] is whether or not the letter sent by Mr Bay to Mr Ford was libelous. 

Case Decision: 

The court ruled in favor of Mr Ford because as the solicitor of the college, he was allowed to receive payment for the services he rendered. Moreover, there was misdirection, as highlighted by the Court of Appeal because the letter was not substantiated. 

Additional Information:

The comment in the case of Bray v Ford [1896] suggests that a director or a person who has a fiduciary position in an enterprise, specifically in a charitable enterprise, must not consider himself/herself to be placed in a position where he/she gains profit. However, if this expressed by the enterprise, then the person with fiduciary duty may engage in such activities.