3.3 GROUP OF COMPANIES
There is nothing in law that recognises the legal personality or legal status of a group of companies. It is a fact in law that a Director owes his fiduciary duty to that of the company that he is a director of and not to a group. When looking at inter-company transactions the director must consider his duties to the company that he is a Director of. It may be that a Director is a Director of two companies in the group where there are intercompany transactions. In this situation, each transaction must be judged according to the interest of a company he is a director of. The test to make this determination is a subjective one and the Courts will have a look at whether the Director believed that they have acted in good faith.