Riley (2003) writes that "Common Law corporate governance principles traditionally impose no obligation on company directors to consider the interests of employees when deciding how to manage the corporate enterprise. The directors duty is to regard the best interests of 'the company' and the company has been defined as the shareholders. .......The notorious case of Parke v Daily News Ltd (1962) Ch 927 held that a company director was in breach of his duty to the company (ie, shareholders) when he caused the company to pay retrenchment benefits to long-serving employees, because the company had no strictly enforceable legal obligation to make those payments".
