Directors conflict of interest

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Original Message Added : 9 Aug 2012

I am one of two directors in a small limited company, with 50-50 ownership.

My co director has, without telling me, started a business as a sole trader engaged in the same industry as the limited company. I have discovered this without his knowledge. He is handing out his own business cards to existing customers of the limited company. He makes all kinds of excuses to justify his absence whilst he is engaged in his own business. Is he breaking the law as a director, and can he be legally made to declare all earnings from his business activities?

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	G Griffiths from Birmingham Heat Exchangers Ltd
Location :	Birmingham
Joined :	09 August 2012
Contact :	Send Private Message
Posts :	1 ( 0)

Reply : 9 Aug 2012

I don't know about the law and it depends on what agreement you have between you best speak to a solicitor is specialises in this field as it does not look good for you stealing the bread out of my mouth comes to mind.

Also what is your relationship with this person ie good personal or business only either way you need to request an official recorded meeting with another couple of witnesses and at least you are entitled to an explanation because it impacts on you and the company.

Would also advise not to lose the rag yes its hard that you have found out but any banging of the table confrontation stuff will only play into his hands so he can say that's why I am peeling off. my personal gut feeling is he is undermining the business for his own profit

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	Andrew White from AEW Electrical
Location :	Edinburgh
Joined :	23 June 2010
Contact :	Send Private Message
Posts :	95 ( 18)

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