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Readers’ forum: Can I act for warring parties?

24 January 2023
Issue: 4873 / Categories: Forum & Feedback
Conflict of interest

I act for a UK manufacturing company with three (unconnected) directors: A B and C each of whom owns one-third of the shares. Director A is a personal tax client of mine. Most of my interactions are with Director B the finance director.

Up to now the three directors got on well but there has been a major disagreement with A wanting to take the company in one direction and B and C in another. A has asked me to advise him on the tax implications of buying out B and C but doesn’t yet want to put a proposal to B and C until he has sufficient financial information to value the company. He has asked me to obtain that information from B the finance director as requests coming from me are less likely to arouse suspicion. I am stuck in the middle....

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