A situation where a professional, or a corporation has a vested interest which may make them an unreliable source. The interest coud be money, status, knowledge or reputation for example. Ehen such a situation arises, the party is usually asked to remove themselves, and it is often legaly required of them.
An example of a conflict of interest would be a board member voting on the induction of lower premiums for companies with fleet vehichles when he is the owner of a tow truck companies outside of the corporation. In relation to law, representation by a party with a vested interest in the outcome of the trial would be considered conflict of interest, and the representation would not be allowed.
Source: http://www.investopedia.com
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