Disclosure of Information by Directors

 
 

"It was hard to be directors of more than one company with business on-going. To be absolutely safe, when there is a potential for conflict, it's a very early warning bell to disclose to other fellow directors to avoid further problems."

Professor Alex LAU
Department of Accountancy & Law
School of Business, Hong Kong Baptist University

 
Summary of views:
 
• 
Some opined Fred Wong should not have been directors of both On Yee and Manfold as contradiction of fiduciary duties existed. There is also a question on whether he should tell Joseph about the financial problem of On Yee USA since it was a mere rumour. Fred was suggested to ask someone else, such as another director of the board, to verify the rumour. If it was substantiated, he should resign from Manfold and its Audit Committee.
   
• 
Some found it hard for Fred to be directors of two companies with business connections. The potential conflict of interest perceived should serve as a warning bell for him to disclose the issue to other directors.

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