Yesterday I blogged about the fiduciary duty, the highest standard of care at law and equity. Learn lots more with the Board of Directors’ Essential Toolkit law videos — or, post the link to the entire board.
Part of the duty of loyalty to the shareholders, is the obligation to not place yourself in a position that presents a conflict of interest.
What is a conflict of interest?
Your primary obligation is to the company’s best interest — not your own interests. If you put yourself in a position where you personally may profit from the directors relationship, then you would have two interests: the company’s interest, plus your own person interest. If those interests conflict, you have a conflict of interest.
Why is a conflict of interest such a big deal? Learn more later . .