3.2.6 Duty to avoid conflict of interest
A Director cannot have any conflict of interest in anything that is in conflict with the company. There cannot be any personal interest or have a duty to another party.
The Director cannot be involved in competing situations with the company. In regard to non-executive directors the legal position is not clear as there are many examples of this breach of duty, as a non-executive Director may hold positions in competing concerns.
If there is a breach of duties by the Director and there is a conflict of interest the company or the shareholders may recover damages.
A Director must make full disclosure of all his other interests.