Trust in the boardroom

Do theories of trust and scepticism have relevance for the law concerning the collective and individual responsibilities of company directors? This article explores the links between theoretical aspects of trust and the ways in which company law constructs the individual and collective responsibilities of company directors. It brings together definitions of and approaches to trust that appear in other disciplines. It frames the relationship between directors and the company and gives a trust-based analysis of directors’ duties. Finally, it explores the trust or distrust that the law expects between directors. This analysis is important at a time when ‘trust’ is increasingly being used in discussions of corporate governance best practice.