Due to the globalisation of business and the concept of borderless business activities, these new phenomena need business management to be open and adopt and practice management’ skills with the international in mind, and give good consideration to the circumstances of the internationalisation of the business through directors having powers as provided under contract and law. The financial crises in previous years have demonstrated the importance of directors’ duties to manage the company's affairs properly; these crises were a result of many cases of fraud and mismanagement. The directors’ duties in the UK and the KSA have been codified to enhance the clarity of the law and make it easier for the responsibilities of directors towards the company and others to be understood. It also aims to prevent fraud and mismanagement that causes corporate collapse.
This study investigates and analyses the powers, duties and liabilities of the directors in Saudi Arabia and the UK in order to demonstrate the extent to which these regulation work effectively. This is by a critical evaluation of relevant legislation and case law on the subject matter of the study and demonstrating practical problems, which may result from some legislation. By doing this, the study provides an accurate picture of the directors' powers, duties and liabilities, and provides solutions to practical problems of legislation in the same context.