Conflict of Loyalty

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Where one who holds a fiduciary responsibility  in nonetheless diminished in his/her ability to act in the best interests of the person or entity towards which they have such a responsibility, because of a loyalty that they have towards another person or entity. It differs from a conflict of interest, which implies having financial or other interests that compete with or are in conflict with the person or entity towards which that fiduciary responsibility exists.

For example: when a board member’s decisions are or might be influenced by objectives other than the organisation’s best interests, such as when a board member feels responsible for representing the group that nominated them.


Conflict of loyalty (Law Insider)