Conflicts of interest and related party transactions
Introduction
Identifying, approving and disclosing dealings in which directors, managers or major shareholders have a personal interest.
Conflicts of interest are a normal part of business life, especially in family groups where directors also own suppliers, landlords or competitors. The risk lies in not identifying and approving them properly. The Companies Law requires a director's interest in a company transaction to be disclosed and authorised, and restricts directors from competing with the company without authorisation.
We build conflict of interest policies, disclosure forms and registers, and related party procedures that set thresholds, the approving body and the information it needs. For listed companies we apply the Capital Market Authority's disclosure and approval requirements.
When a transaction is challenged, we review how it was approved, advise directors on their exposure, and represent boards and shareholders in the disputes that follow.
How we help
What the work covers
Policy
A conflict of interest policy that defines interests, duties and the consequences of breach.
Disclosure
Annual disclosures, disclosures when a new interest arises, and a register the board can rely on.
Approval
Thresholds and procedures for approving related party transactions.
Review & disputes
Reviewing past transactions and representing the parties when they are challenged.
Contact