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Michael Holly
Michael Holly, Solicitor
Category: Law
Satisfied Customers: 7071
Experience:  I have 20 years of experience as a solicitor in litigation and other areas
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Director conflict of interest: when should a director

Customer Question

Director conflict of interest: when should a director disclose - I have set up a company that is not competing with my current employer, in fact it is not trading as such, it will be used to invoice end of year fees to my present company. My colleague director insists it should be declared? The whole area of when to declare and not seems quite unclear can you help?
Submitted: 1 year ago.
Category: Law
Expert:  Michael Holly replied 1 year ago.

A director is obliged to act in the best interests of the company and must reveal any outside interests which may affect that directors judgment when considering, say, who the company should enter into a contract with. Where a director has a vested interest or conflict the director must declare such a conflict and not take part in any director's decision on that issue.

As such, here a conflict does not apply as the company is a vehicle for payment only. However human nature does apply so your co director is as curious as you would be if they had another company vehicle.

Best wishes