Don’t be caught out by new rules on conflict of interest

Individual elements have been coming into force over the last two years but there are still two tranches of legislation left, the next of which takes effect this month.

One of the key changes concerns the duties of directors in relation to conflicts of interest, where a director has a direct or indirect interest in existing or proposed transaction or arrangement.

Sections of the Act which have come into effect this month significantly alter the duty of directors to declare conflicts of interest and it is therefore vital for companies to ensure that their directors are fully aware of these changes now.