A conflict of interest is a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity. Directors of companies have fiduciary duties of loyalty and care to the company and its stockholders. Directors must put the interests of the company and its stockholders over your own personal interests in making decisions for the Company and evaluating opportunities. This includes not taking opportunities that arise for themselves before offering them to the company, and not divulging or using company confidential information for personal gain. And if there is a potential conflict of interest, directors must disclose it and allow for the Board, with counsel, to determine how to proceed. For example, a director cannot recommend implementing an expensive marketing campaign that will be managed by his/her spouse without disclosing that fact to the rest of the Board.