Informal Opinion Number: 970050

Reference Note: Effective July 1, 2007, Rule 4-1.7 was amended. This opinion is based on Rule 4-1.7 in effect prior to that date.

QUESTION: May Attorney serve as general counsel for a corporation and sit on the Board of Directors and have an ownership interest? What precautions must Attorney take to avoid conflict of interest?
ANSWER: This situation would involve a conflict of interest. Rule 4-1.8(a) sets out the steps Attorney must follow to enter into such a business relationship. This situation creates numerous opportunities for conflicts under Rule 4-1.7(b). Attorney should study the last paragraph under the heading “Other Conflict Situations” in the comments to this rule.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

To request an Informal Opinion, please visit: http://mo-legal-ethics.org/for lawyers/requesting-an-informal-advisory-opinion/.

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