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Conflict of Interest

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1 Conflict of Interest on Tue Dec 10, 2013 6:01 pm

julesrial


Arresto Menor
Good day to you.

There's this director of IT Company A (with shares) who's also an employee working as a Sales Head. As an employee, he's getting salary from Company A.  However, this same director is also a director (with shares again) of another IT Company B (but I don't know if he's working in it as an employee and getting his salary).  Both IT companies are in the same line of business, which is IT consulting.  Ever since this director joined IT Company B, we noticed that Sales of IT Company A has deteriorated.  My suspicion is that this director is passing sales opportunities from IT Company A to B using Company A resources and despite being paid salary by Company A.

In addition, it is proven that he's using Company A accountant to do some accounting tasks for Company B. He justified it by saying Company A accountant was working for Company B outside Company A workhours and accountant was being paid separately from Company A salary. However, there was a noticeable breakdown of performance from Company A accountant since she would always report for work late (reports for work nearly at noontime). This is because accountant would often work late at night for Company B.

My question is this:  without the suspicion of passing sales opportunities from Company A to B, sticking to the issue of 'conflict of interest', is this director liable for suit?  

Thanks!

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