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Revised (Nov 3 2008)
Conflict of interest
Concerns about conflict of interest are often grounded in perceptions about relationships and the use or misuse of information.
You are in a conflict of interest if a board decision results in a potential financial or material impact on you or someone you’re associated with or if there is a substantial personal benefit or detriment to you. Boards and individuals need to be vigilant in avoiding active engagement in discussion, debate, decision-making or even being privy to information that can give rise to actual, or even perceived, conflict of interest.
A board should have documented policy to guide trustees and officials in instances where conflict of interest could arise. The onus rests on the individual to remove him or herself from the conflict. The board chair and secretary treasurer are responsible for advising trustees or officials when they are in a potential conflict position. Any trustee can appeal to the rules of order of the meeting and table a motion regarding another trustee with a potential conflict.
The most desirable situation is where individuals, sensitive to potential conflict, remove themselves from involvement in the matter. Such conflicts could include a trustee who belongs to a union local that’s affiliated with a union the district is bargaining with, or one who has a spousal relationship with an employee. In such instances, privileged access to information raises concerns, even if the trustee does not participate in debate and refrains from voting. Matters such as land transactions involving potential gain are clearer, where being privy to information is similarly sensitive.
The best defence is to advise the board chair of the potential conflict and ask for the matter to be placed on the agenda. When the item comes up, you must declare the nature of the conflict. If you are in a closed session (in camera) meeting, you must leave. If the issue comes up in a public meeting, you must not participate in the discussion or vote. Your declaration and withdrawal will be recorded in the minutes.
In smaller communities, it may be more difficult to avoid situations and relationships that could give rise to perceptions of conflict. It may be wise to protect yourself from a potential accusation by withdrawing from certain committees and activities.
Conflicts of interest can also be an issue for board officials and staff members and undisclosed conflicts can breach terms of employment.
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