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Case Studies
Directors’ dilemma: director tendering for company contract

In this case study, you are the chairman of a public body. The board is entirely comprised of non-executive directors.
The financial controller contacts you in connection with the tender for a very substantial security contract which is about to go public. Clear criteria have been drafted for the basis of awarding the tender. She mentions that she had been contacted by a board member, who drew the financial controller’s attention to his ownership of a company providing security services, requesting that he be notified when the tender goes public.
Should the board member be permitted to tender for the contract in the company?