When should directors declare their interests in proposed transactions?

Directors have a fiduciary duty to act in the best interests of the company they serve, and this includes a responsibility to declare their interests in any proposed transactions. It is crucial for transparency, corporate governance, and maintaining trust among shareholders and stakeholders.

Declaring interests prior to the transaction ensures that any potential conflicts of interest are appropriately managed. When a director stands to personally benefit from a transaction, it is not only ethical but legally required for them to disclose this interest before any decision is made. This allows the board to consider the implications of the director's interest and take necessary steps to ensure that all decisions are made in the best interest of the company and its shareholders.

In the context of the other options, declaring interests after the transaction would undermine the director's responsibility to act transparently and could lead to conflicts of interest that are not addressed. Indicating that a declaration is only necessary if it is convenient for them disregards the need for integrity and accountability in corporate governance. Similarly, stating that directors are not required to declare anything is inaccurate, as legal frameworks typically mandate such disclosures to protect the interests of the company and its shareholders.