Obligations under the Companies Act 2006
Directors have a duty, under Section 175 of the Companies Act 2006 to avoid conflict of interest situations, unless authorised by the Board or its shareholders. They must disclose any interest in a potential transaction (s177) or an existing transaction (s182). These duties also apply where the conflict involves a director’s connected person; such as a family member.
All companies should document details of directors’ conflicts and record when each was approved or declined including any conditions of approval and tracking.
How can Blueprint OneWorld help?
Blueprint OneWorld’s integrated conflicts management solution, will help manage directors’ or third-party conflicts of interests, benefits received or offered and their connected persons. It streamlines the process for Managing Directors’ conflicts across all entities:
- Report, Review & Authorise conflicts
- Full audit trail of authorisations
- Authorisations calendar to ensure periodic reviews are completed
- Emails alerts for upcoming and overdue authorisations
- Clone function for when director’s interests apply to many companies saving significant time and avoiding duplication
- Gifts and third-party benefits