A director must abstain from voting on a proposed transaction in which he or she has a personal interest.

Name: A director must abstain from voting on a proposed transaction in which he or she has a personal interest.
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Question

A director must abstain from voting on a proposed transaction in which he or she has a personal interest.​

Quizplus · Accepted Answer

This is known as a conflict of interest and is prohibited by corporate governance principles. The director must disclose their personal interest and refrain from voting to avoid any potential bias or self-dealing.

A Director Must Abstain from Voting on a Proposed Transaction