NOTE: Although written in 2012 this article remains relevant as at November 2015
Some company directors have a tendency to view the firm as an extension of themselves, which can lead to sticky situations for boards and their advisers. Jennifer Adams sets out the rules and principles to prevent these problems from happening.
In an ideal world all directors would become members of boards with just one aim - to act objectively in the interests of the company, making decisions based solely on the business merits of the situation. Unfortunately we have all come across sole director/owners who regard the company as an extension of their selves with the potential for what the Institute of Directors terms “self interested bias in their decision making” in its
Jennifer Adams is Consulting Editor of AccountingWEB and is a professional business author specialising in corporate governance and taxation. She runs her own accounting and consultancy business with offices based in Surrey and Dorset.