Governance in groups with regulated firms – whether banks or other financial institutions – involves points that don’t apply to groups of unregulated firms. The general rule is that directors of a company have: A duty of trust, a fiduciary duty to act with integrity, fairness and honesty, having regard to the interests of shareholders; […]
Tag Archives: conflict of interests
Governance and Group Dynamics
Posted in Governance Reframed
Also tagged directors, governance, group, independent non-executive directors, non-executive directors, parent, regulatory requirements, shareholder, subsidiary
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Outsiders becoming insiders
This isn’t a note about insider dealing. It’s a note about independence and situations in which that might be compromised by an independent or external person becoming so vested in a firm that they become part of the home team rather than being a true outsider. This won’t always be the case. But there’s a […]
Posted in Governance Reframed
Also tagged auditors, board, independence, independent, independent non-executive directors, INEDs, insiders, outsiders, professional advisers
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Conflicts of interests for Boards
Conflicts of interests are relevant to all regulated firms in a number of ways. This note looks at conflicts of interests in the context of boards of directors. To begin, why do conflicts matter? Directors have a duty to shareholders to act honestly and in good faith. There’s an underlying principle that directors should not […]