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When a conflict arises
Common examples: contracting with a business you also own, a related-party loan, or a competing interest. The duty is to avoid conflicts and to declare any interest in a transaction with the company before it is entered into.
Managing it
Declare the interest, record it in the minutes, and usually abstain from the decision. The articles or shareholders can authorise a conflict properly disclosed. This ties directly to your statutory duties.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Do I have to declare a conflict of interest?
Yes. You must declare any personal interest in a transaction with the company before it is entered into, and generally not vote on it.
What happens if I do not?
It breaches your directors’ duties, can void the transaction, and may expose you to personal liability for any resulting loss.
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