Non-executives directors - Conflicts of interest
A recent case reported and commented on by the Financial Conduct Authority (FCA) highlights the duty of non-executive directors (NEDs) to avoid conflicts of interest.
The FCA stated that “the position of NEDs is critical to the effective functioning of a board and to maintaining the confidence of customers. Because of the nature of their role, NEDs are more likely to have a portfolio of appointments and are likely to find themselves having to manage conflicts of interest more frequently than their fellow directors. NEDs need to manage scrupulously their conflicts of interest and to observe basic corporate governance principles.”
You can find more about the case and guidance on directors’ duties under the Companies Act 2006 here.