The Department for Business, Enterprise and Regulatory Reform (BERR) has confirmed that provisions in the Companies Act 2006 that relate to directors’ duties on conflict of interest will come into force on 1 October 2008.
The announcement follows consultation on whether to delay the provisions of the Companies Act that are due to commence on 1 October 2008.
In relation to directors’ duties on conflicts of interest the Companies Act 2006 introduces:
- the broad statutory duty for directors to avoid conflicts of interest;
- the duty for directors not to accept benefits from third parties; and
- the requirement that directors should declare an interest in transactions with company.
These provisions will be relevant to companies which act as pension scheme trustees.
The government aims to make a commencement order before Christmas in respect of the provisions.