Conflict of Interest Inside a Company - a Vision of Comparative Law within a Democratic Society
Conflict of Interest Inside a Company - a Vision of Comparative Law within a Democratic Society

Summary/Abstract: In the context of the development of the private sector in the new democratic society and thus of the increase of the number of legal persons under private law, which had the inevitable effect and the increase of the number of situations of conflict of interests, as well as of the existence of a legislative framework to protect the legal persons from such incidents, there is not yet a paper that deals extensively with such situations and tries to provide answers to questions often born in practice. Conflicts of interest are therefore the great challenge of corporate governance. An effective governance regime must limit conflicts of interest in order to promote the maximization of value inside companies. When dealing with conflicts of interest, it is important to emphasize that interests are often in conflict in business relationships. But it is not this kind of conflict of interest that must be prevented in company law, but those that manifest themselves in a context in which a party has power. Power is likely to be the theater of vertical and horizontal conflicts detrimental to the company’s interest. The analysis of the conflict of interests within a company refers to the notions of loyalty, good-will, independence, impartiality, individual will, company will, individual interest and company interest. Although starting from a common denominator, the law systems of different states sometimes treat the conflict of interests distinctly, creating, for example in the common-law system, a new understanding of the concept.

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