Document background
The Conflict of Interest Disclosure Letter is a critical governance document used in Indian corporate and organizational contexts to maintain transparency and ethical business practices. It is required whenever an individual identifies a situation where their personal, professional, or financial interests might interfere with their ability to act in the best interest of their organization. This document is particularly important in light of Section 184 of the Companies Act 2013, which mandates disclosure of interests by directors, and similar obligations for other key personnel. The letter should be submitted promptly upon identifying a potential conflict, during annual declarations, or when circumstances change. It typically includes detailed information about the nature of the conflict, timing, potential impact on duties, and proposed management strategies. The document serves both as a legal compliance tool and as a risk management mechanism to protect both the individual and the organization.
