General Introduction to Chapters 4 and 5
379.These Chapters contains several provisions designed to deal with particular situations in which a director has a conflict of interest. They replace provisions of Part 10 of the 1985 Act, but with a number of changes. The aim of the changes is:
	to improve accessibility and consistency. The Law Commissions commented that Part 10 of the 1985 Act “is widely perceived as being extremely detailed, fragmented, excessive, and in some respects, defective, regulation of directors”; and
	to implement various recommendations of the Law Commissions and the CLR (see in particular section B of the Law Commissions’ joint report Company Directors: Regulating Conflicts of Interests and Formulating a Statement of Duties, annex C of Developing the Framework, chapter 4 of Completing the Structure and chapter 6 of the Final Report).
380.Provisions regulating directors’ conflicts of interest fall into two main categories:
	requirements for disclosure to members;
	requirements for member approval.
381.The four types of transaction requiring the approval of members (long-term service contracts; substantial property transactions; loans, quasi-loans and credit transactions; and payments for loss of office) have been brought together within Chapter 4.
382.Provision for disclosure to members in respect of directors’ service contracts is contained in Chapter 5.
383.On the other hand, the requirements in Part 10 of the 1985 Act to disclose, and maintain a register of, share dealings by directors and their families are repealed (see section 1177).