Directors are regarded as trustees in two respects namely:
– money in a company bank account which directors are authorized to operate is held 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.