Member Content
Case Studies

Directors’ dilemma: conflicted directors of the board

by Stephen Conmy on Feb 10, 2021

Download Case Study

Members receive exclusive insights and opportunities

The Corporate Governance Institute provides it's members with exclusive content, a network of directors and business leaders, details of available board positions, and the tools and resources required for a successful governance career.

Learn More

Already a member? Log in here

In this case study, you are a non-executive chairman of a publicly owned commercial company operating in a sector of national importance. The publicly owned commercial company is a monopoly supplier to this sector.

Board appointments are made by the government. The managing directors of two of the largest operators in the sector/customers of the monopoly supplier are well-known supporters of the political party in government. They have recently been appointed as non-executive directors to the board of the monopoly supplier.

You have received angry complaints from the remaining five large operators in the sector, who are concerned at the competitive advantage accruing to the two recently appointed directors on the ‘inside track’ with the monopoly supplier. The question of pricing of product to the sector/customers is an agenda item at the forthcoming board meeting.

How should conflicts of interest on the board be handled?

Case Study

Related Posts