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That's not a grey area at all. If you are a director and you are pushing your board to drive business to a company you have a significant stake in, you MUST dis
by jsmith99 5y ago
That's not a grey area at all. If you are a director and you are pushing your board to drive business to a company you have a significant stake in, you MUST disclose that.
A grey area would be more like whether you should offer to leave the meeting while they discuss the proposal.
- spenczar5 5y agoYep, I agree. I was responding to the comment from ghaff that they "can't imagine any BoD would be cool" with a deal getting signed in a clear conflict of interest. I can imagine a board going along with it. Of course, the conflict definitely needs to be disclosed!
- ghaff 5y agoOh I agree. I was really talking about the kickback case as in here. There are other types of conflicts which happen and may be fine so long as the person in question isn't making the decision on their own and, as you say, has disclosed it.