Expert: John Varghese - 6/2/2010

Question
Hello, I am a small one owner graphics firm that is trying to design yearbooks for schools. I was asked to fill out a CONFLICT OF INTEREST QUESTIONNAIRE form and this was on there? What is this? I could not find any info on line.
what is if "A person commits an offense if the person violates section 176,006 local government code"

thanks a lot for helping provide me with some info.

Answer
Dear Kim,

Conflict of interest simply means when doing business with a firm, you dont have any interest which is not confirming with the business of the firm, like any personal interest in getting any contract etc. Many states ensure that their corporations do not conduct businesses where there is a conflict of interest so as to avoid menaces like insider trading. Simply speaking this works out like this: in the eyes of law, you and your business(if it is a partnership or corporation) are two different persons. Good business practice requires that you should only earn as much as an outsider sees you earn out of a business deal, and you should not enter into any deal on behalf of your firm, only because or partly because, you may stand to benefit personally from such transaction.Since you have not mentioned the exact place where you live, I am unable to find out S 176,006 of local code, but it definitely relates to corporate governance practices.

Regards

John Varghese