Guiding Principles for Directorial Conflicts of Interest: Re Allied Business and Financial Consultants Ltd; O'Donnell V Shanahan
The Court of Appeal has disposed of the ‘scope of business’ test as the touchstone principle for directorial entrepreneurship cases and has confirmed the continuing applicability of a capacity approach while emphasising the importance of directors obtaining the company's informed consent before taking up opportunities that they encounter. This provides welcome legal certainty but raises interesting questions about the scope of a director's disclosure obligations.