Tuesday 16 December 2014

UK: Non-executive directors and conflicts of interest

The Upper Tribunal (Tax and Chancery Chamber) gave judgment yesterday in Burns v Financial Conduct Authority [2014] UKUT 0509 (TCC): see here (pdf). The Tribunal held that Mrs Burns was not fit and proper to hold a non-executive director position. She had, the Tribunal held, "turned a blind eye" to various ethical issues concerning conflicts of interest.

In its decision, the Tribunal commented on the role of the non-executive director (at para. [121]): "It is a sensitive function. Non-execs often have wide-ranging business interests. A non-exec position requires rigorous adherence to the proper standards concerning avoidance of conflicts and the making of disclosures".

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