The Regulation of Directorial Conflict of Interest: Efficiency, Morality and Conflicting Values in Indian Perspective
35 Pages Posted: 16 Sep 2009
Date Written: September 15, 2009
The Directorial Conflicts of interests that usually arise are because of the nature of a person to earn more in as much less time he can or because of the secret dealing between the third party and the Director as the directors don’t really abide by their duties strictly. The paper analyses the following issues: What are the different Duties and Liabilities of the director; what are the different types of situations that may lead to conflict of interest between the Director and Company; whether non-abidance by the Director to his duties leads to conflicting values; can actions taken by the Director on moral basis lead to conflicting values. The main object of the study is to look upon the different types of directors, their duties and their liabilities. Furthermore the study seeks to deal with the duties of the company. The study will further lead to the conflicting interests that arise between the Director and the Company and find ways to avoid and overcome them. The study will be more of a practical approach rather than a theoretical approach. The scope of the study may extent to its applicability in the real world. The target that is focused upon more is to have an approach that may be applicable in the real world and not only on books. Therefore the scope of the study may also be said to be wide enough as go pass the books to the world. The study carried forward by the news and current affairs relating to different companies. There can be no law made in order to avoid the conflicting interests but only actions can be taken after they have actually occurred. This is because the conflicting interests are usually as a result of the personal and moral values and action and those actions can never be prevented as no law can be made that can read the mind of the person and thereby control his actions.
Keywords: Doctorial Conflict, duties of director, liabilities of director, conflicting interest
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