Duncan Sheehan and David Mead provided me with some interesting insight that I will investigate further.
Duncan pointed out understanding the difference between a conflict of interest and a conflict of duties and what the effect and differences of the two where for a director's liability. He mentioned conflicts of duties had rarely been looked, although there is some work out there by Matthew Conaglen.
David also highlighted the actual wording of s175 Duty to avoid a conflict of interest:
(1) A director of a company must avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company.
(2) This applies in particular to the exploitation of any property, information or opportunity (and it is immaterial whether the company could take advantage of the property, information or opportunity).
The exact wording "must" under a literal interpretation could restrict a director from ever serving on more than one board in the same sector/industry. This wording however, may tie in to the understanding of the difference that Duncan raised between conflicts of interest or duties.
Watch this space for further updates on this matter in the coming weeks.
I am now currently preparing for my next presentation to the law in society group in Derby next week as well as preparing for the undergraduate seminars on Directors' Duties.
The exact wording "must" under a literal interpretation could restrict a director from ever serving on more than one board in the same sector/industry. This wording however, may tie in to the understanding of the difference that Duncan raised between conflicts of interest or duties.
Watch this space for further updates on this matter in the coming weeks.
I am now currently preparing for my next presentation to the law in society group in Derby next week as well as preparing for the undergraduate seminars on Directors' Duties.
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