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Topic 5: Effective Handling of Conflict of Interests
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Dr Peter LAU Kwok-kuen, Chairman and Chief Executive, Giordano International Limited represented the five Cantonese discussion groups and reported back on the topic "Effective Handling of Conflict of Interests". His sharings were as follows.
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- Company secretary had a duty, the initiative and courage to alert the directors to a variety
of conflicts of interest, including the possible legal or regulatory liabilities, as well as the
importance of avoiding and declaring any conflicts of interest.
- Directors, in particular, the non-executive directors, should receive mandatory training on a
regular basis. Not only did it help them understand the laws and regulations, but also grasp
a better understanding of their responsibilities for their own gain, as well as strengthen their
confidence in performing their roles in the board of directors. They might raise comments or
queries to executive directors or even the Chairman when necessary.
- The management had to arrange for their companies integrity training provided by the
Independent Commission Against Corruption. At the same time, the management should set
an example and not to accept any gifts without approval.
- To set up a sound control system for proper reporting and handling of conflicts of interest,
the management must ask employees to declare all kinds of conflicts of interest, such as
acceptance of frequent or luxurious entertainment in their official capacities. Appropriate
declaration was vitally important. It could increase transparency, enable parties concerned to
avoid speculation, and also facilitate an auditor to make a balanced assessment and scrutiny
on any transaction involving conflicts of interest.
- Companies should take an initiative to inform their contractors and suppliers on the company's procurement policies.
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