Directors' conflicts of interests under the Companies Act 2006

The provisions in the Companies Act 2006 relating to directors’ conflicts of interests and their disclosure came into force on 1 October 2008.

This note explains the changes made to the law and sets out practical steps companies should take to ensure compliance with the law.

The act includes the following directors’ duties: a duty to avoid a situation that gives rise or may give rise to a conflict of interest; a duty to declare interests in transactions and arrangements (which must be disclosed to the board but need not be approved); and a duty not to accept benefits from third parties that are conferred on them either because they are directors or for doing (or not doing) something as a director…

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