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  • #979438
    NathanB
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    Hi Everyone.

    I am looking for some opinions/advice relating to an interesting business/directorship situation.

    As I understand it, A director of a company is legally obliged to act in the best interests of the company they direct.

    My question is, can a person be a a director of two companies that compete directly with each other?

    Thanks in advance.

    #1114292
    Chris Brodie
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    NathanB, post: 128112 wrote:
    Hi Everyone.

    I am looking for some opinions/advice relating to an interesting business/directorship situation.

    As I understand it, A director of a company is legally obliged to act in the best interests of the company they direct.

    My question is, can a person be a a director of two companies that compete directly with each other?

    Thanks in advance.

    Hi Nathan,

    Yes you can be a director of both companies, but if they compete then you would be legally and ethically obliged to inform both parties to avoid any real or perceived conflicts of interest.

    The real question would be why do it to yourself. At some point you could end up putting one company before the other (be it a idea you have for improving profit or seeing a plan in one company that you know the other company could benefit from). When this situation arises you will have to question if you are adequately meeting your role as a director of the company you have placed second.

    It is always hard to serve two masters.

    Cheers,

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