More details to this question:
I own a business with a partner who is also on the board of another company. My business that I am partnered with wants to sell products to the company that my partner is on the board of. The product that I am trying to sell to the other company is a product they already purchase and is cheaper than what they are currently paying. It is a benefit for both parties. Is this a conflict of interest or are there any legal issues doing this?
1 ANSWER
Your partner has a conflict of interest, and should not be the person who approves a deal for the other company, or allowed to vote on the issue if it ocmes up before the board of directors of the other company. However, that doesn't mean that there is anything improper about the deal if it is authorized for legitimate business reasons by disinterested people of the other company.
Answered on May 05th, 2016 at 7:35 AM