The next tranche of Companies Act 2006 provisions come into effect in October. These include stricter rules on directors’ conflicts. Directors will be required to avoid any situation in which they have direct or indirect interests which conflict, or could conflict with those of the company. Where a conflict is identified, the director will require formal authorisation to avoid the possibility of a claim for damages by the company for breach of duty. From October, that authorisation may be granted by the board of public companies if the company’s articles permit such conflicts and by the boards of private companies if an appropriate shareholder resolution has been passed. Companies which are likely to be affected by these changes should be encouraged to start making the necessary changes to their articles or to pass a special resolution as soon as possible, if they have not already done so.