Is that it?
Well without seeing what this relates to I can only make the following assumptions.
1. It is a 'disclaimer' or 'advisory' of that which is obvious to some and perhaps not to others - hence its inclusion.
2. In fact, it applies to all public entities (indeed other forms of business setups e.g. partnerships etc.) particularly small spec companies as Directors might sit on one or two different boards but in related industries as noted by the auditor.
3. If a particular Director (Nick e.g.) uses his voting power, given he has a large number of shares, to enter into an arrangement that works well for his holding and maybe not other holders then this is what that '
note' is pointing towards.
4. In any event, sections of the Corporations Act 2001, as noted above, legislates how to deal with potential conflicts of interest of Directors voting into third party transactions etc.
5. The Corporations Act 2001 combined with rather large body of common law relating to the Fiduciary Duties of company officers would give the average Director cause to pause before entering into something which could be argued as a conflict of interest.
If what you have posted above represents the 'core' of the issue then it really is not worth worrying about any further - in my view. Move on folks.
There is always a risk of Directors doing the wrong thing just as equally as there is for accountants and wait for it ............. yes .... even auditors.
What I have written in this post does not constitute advice of any kind or substance. It is my general opinion regarding the limited material presented here.
Enjoy your day folks.
Please excuse the typos - I was very rushed. I am working far too hard today - sadly!
