By LawBite Team
If you are the Director of a limited liability company you must comply with the seven Directors’ duties provided for under the Companies Act 2006, namely:
In this article, we will be focusing on the duty to avoid any conflicts of interest.
Section 175 of the Companies Act 2006 states that company Directors must avoid situations where they could have a direct or indirect conflict between their personal interests and those of the company. Particular care must be taken concerning the exploitation of any property, information, or opportunity and it does not matter whether the company could have taken advantage of the property, information, or opportunity but did not.
Free Director Resignation Letter
The Companies Act conflict of interest section, states that potential conflicts of interest are acceptable if:
Directors can give authorisation so long as the company’s articles of association provide for such a circumstance. When authorising a potential conflict of interest the directors must comply with the other relevant directors’ duties, including promoting the success of the company.
The penalties for breaching Directors’ duties can be severe and include a fine and/or being banned from acting as a director for several years. If you require legal advice on any matters relating to conflicts of interest or Directors’ duties, click ‘Get started’ below.
Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.
Read more of our latest blog posts, featuring all the latest legal news, analysis and opinion from our expert lawyers.
During the height of the Covid-19 pandemic, many office workers had to work solely from home, something which was mostly unheard of before the pand...
A Temporary Work Visa, formally known as a Tier 5 Visa allows foreign nationals to live, work, or study in the UK for a short time, between 6 and 2...
As a business owner, you have a legal requirement to carry out a Right to Work check (RTW) on all new employees to verify that their immigration st...
LawBite is on a mission to provide business legal advice that is easier to access, clearer to understand and much cheaper. Our on-line legal advice platform can quickly connect you with expert business legal advice. Our friendly, highly qualified business lawyers, solicitors and mediators will give you the guidance and reassurance that comes from customised legal advice for small and medium sized business.
Whether you are bringing or defending a legal claim, outsourcing work, want a business contract review to ward off disagreements, talk to an expert trademark lawyer, resolve a contractual dispute with methods like mediation and arbitration, or getting your new company set up and on the right footing with a robust shareholder agreement and GDPR standards, we can help you succeed.