Conflict of Interest within board should be avoided. Outside business activities should be reported to, and if significant, accepted by the board based on the approved regulations. 8/1/1 Managing conflicts of interest is one of the key functions of the board.
8/1/2 The board should consider the independence requirements, where there is a potential conflict of interest such as integrity of financial and non-financial reporting, internal control procedures, nomination of Directors and key executives.
8/1/3 The board has the right to establish specific committees to address issues that may include potential for conflict of interest, independence requirements identified in the Principles 6 and 7 must consider.
8/1/4 Whenever a material conflict of interest (temporary or ongoing) of a Director has been identified and declared, it is good practice for that person not to be involved in any decision or given transaction or matter unless all necessary legal requirements have fulfilled.
8/2 Ongoing conflicts of interest within management
Ongoing conflicts of interest within management should be avoided. Outside business activities of management should be reported to, and, if significant, accepted by the board.
8.3 Conflicts of interest among investors and auditors
8/3/1 The institutional investors should disclose any material conflicts of interest that may affect the exercise of ownership rights regarding their investments. They should also disclose how they will manage this conflict of interest, including the structuring of incentives to their employees. 8/3/2 The external auditors should be independent and free of conflict of interest as specified in the regulations and professional standards. If such conflict exists it must be disclosed and dealt with based on the regularity requirements, established rules and in the company interests.
8/4 Issue the conflicts of interests regulations and instructions
The board shall issue conflict of interest by-laws and instructions for each of the board, management, investors, external auditors and other concerned parties.
