{"id":1034,"date":"2021-12-29T05:59:06","date_gmt":"2021-12-29T05:59:06","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1034"},"modified":"2023-10-19T05:04:55","modified_gmt":"2023-10-19T04:04:55","slug":"conflicts-of-interest-as-a-director","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/conflicts-of-interest-as-a-director\/","title":{"rendered":"Duty to Avoid Conflicts of Interest as a Company Director in the UK"},"content":{"rendered":"\n

As a <\/span>c<\/span>ompany director<\/span><\/a> <\/span>in the UK, you need to watch out for instances of conflict of interest. For example, perhaps you sit on the board of another company, or you may be selling something to the company. In that case, you want to e<\/span>nsure you are not violating any of your corporate duties. This article will explain how conflicts of interest arise, how to avoid them, and how to disclose them where appropriate.<\/span><\/p>\n\n\n\n

Duty to Avoid Conflicts of Interest<\/span><\/h2>\n\n\n\n

One of your duties as a company director<\/a> is to avoid conflicts of interest that clash with the interests of the company. You must also avoid circumstances that have the <\/span>potential<\/span><\/i> to conflict with the interests of your company.<\/span><\/p>\n\n\n\n

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The reason behind this duty is that, as a director, you must promote the interests of the company. It is generally difficult to do that if you have a personal interest at odds with that of your company.<\/p>\n<\/div>\n\n\n\n

Importantly, the duty to avoid a conflict of interest is separate from the duty to disclose a personal interest in a company transaction. However, in practice, these may arise in the same set of circumstances.<\/span><\/p>\n\n\n\n

Examples of conflicts of interest include:<\/span><\/p>\n\n\n\n