Grey areas of internal conflicts require our astute legal counsel
Conflicts of interest often occur in recognizable ways. When an executive, a major shareholder or board members personally profit outside of the enterprise from decisions and actions they make from the inside, they are easily indictable and must be made accountable.
Attorney Abraham Mathew works with clients who encounter conflicts of interest in their organizations. He helps clarify where such situations fall under the law – and where restitution needs to be made.
Conflicts of interest are not always recognizable or clear. When a family members’ business success is enhanced indirectly from something your company decides or does, is that unethical? Do members of the governance structure, successful and interconnected throughout the business community and non-profit organizations, have to recuse themselves of any decision that may tangentially affect one or several of those other allegiances? Is a controlling shareholder, director or officer precluded from ever entertaining career moves within his or her industry, such that they must only make risk-free decisions lest there be accusations of conflicts of interest? Corporate policy might clearly outline the specific types of conflicts of interest that are forbidden within the company. But enforcement of such rules can be far less straightforward.
The law may be clear about direct exchanges of money for favors in most business decisions and transactions. But business presents situations that can be interpreted in any number of ways. Abraham both advises and defends the positions of individuals as well as corporations.
If someone in your company has engaged in conflicting business activities, call us today at (310) 478-4349 or submit your information online to schedule a free consultation to discuss how we can help you. Act quickly to stop conflicts and prevent similar conduct in the future.