Which companies can take advantage of the new procedure in section 175 for disinterested directors to authorise conflicts of interest?
The directors of any private company formed from October 2008 will be able to authorise conflicts in this way. New public companies will be able to if their articles specifically provide that they can. Existing companies, public and private, will be able to choose to enable their directors to authorise conflict. For these companies, a decision of the members will be required. The details will be set out in the fifth Commencement Order, which we are aiming to lay in draft before Parliament before Christmas.
