Conflicts of interest practice guide

This guide helps directors manage conflicts of interest in the boardroom and model good practice.

By Institute of Directors
19 Nov 2021
read time
13 min to read
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A conflict of interest occurs when a director has more than one interest, one of which will or might motivate an act in another.

Even where there is no statutory requirement to disclose interests, the associated risks need to be managed to avoid unwanted consequences.

This guide provides a three-step process for handling a conflict of interests.

  1. Identify conflicting interests in a director's role or responsibilities.

  2. Declare the conflict to the board and record it in the organisation’s interest register.

  3. Determine what course of action should be taken