Although the directors of a company are its agents, they are also held as trustees of the company‟s money and property. However, their position as trustees of the companydiffers from that of ordinary trustees. Discuss.

Directors are regarded as trustees in two respects namely:
– money in a company bank account which directors are authorized to operate is held by them in trust for the company.
– Property that comes into the hands of directors or under their control is held in trust for the company

As trustees directors are bound to;
• exercise all powers as such.
• account for any monies misapplied.
• avoid conflict of interest.

However, directors are not ordinary trustees in that;
• they have no proprietary rights in company property as it is vested in the company.
• They are bound to invest trust property for the benefit of the company.