07 August 2020
Companies - Conflict of interest
I have been asked to be a director on the board of a charity. I believe it would be a conflict of interest to also act for that charity if I accepted appointment to their board.
I have also been invited by a client to join its advisory board. The client is a business operating as a trading discretionary trust. Is this a conflict?
I welcome any comments on the above.
Thank you for the question.
There is no inherent conflict, however a perceived, potential or actual conflict of interest may arise in either scenario depending on the circumstances. Disclosure will usually be an adequate measure to address any issue.
With regard to acting for the charity, disclosure is mandatory. See the Australian Charities and Not-for-profits Commission conflict of interest page for guidance. See also reg 45.25 of the Australian Charities and Not-for-profits Commission Regulation 2013.
Regards
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