Difference between revisions of "Trustee Conflict of Interest Policy"

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In extreme cases, disciplinary matters may include removal of membership and hence directorship under [[Article]] 4.
 
In extreme cases, disciplinary matters may include removal of membership and hence directorship under [[Article]] 4.
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[[Category:Constitution]]

Revision as of 12:56, 5 August 2009

Comment these rules are DRAFT
Comment These Rules are proposed for adoption by the Board under Article 28

Background

Individual board members have personal responsibilities, as directors and trustees, to ensure that the decisions they take are in the interests of the chapter as a whole rather than their personal interest. Where there is a situation where there is a conflict of interest, board members are expected to follow appropriate procedures on disclosure, voting and decision making.

The Memorandum of Association sets out the over-arching rules on conflicts of interest in clauses 5.5-7. A requirement in those articles cannot be overriden by anything in these Rules. They provide that:

No board member may:

  • Buy from
  • Sell to
  • Be employed by, or
  • Receive financial benefit from the chapter unless:


  • The amount is reasonable
  • The transaction is of a type allowed under clause 5.5
  • A majority of board members does not receive a benefit

The restriction also applies to close family members and, in respect of remuneration, to companies which employ the board member.

Likely situations

A conflict of interest may occur even where a board member does not have a personal financial interest in a third party, but has a historical connection or loyalty to them. This includes loyalty derived from being a volunteer committee member.

The following are examples of where board members may face a conflict of interest:

  • Claiming and authorising reimbursement of expenses
  • Purchasing goods and services from a connected organisation, such as hiring a room from your university
  • Partnership agreements for initatives with a connected organisation, such as providing a Workplace Learning seminar at your place of work
  • Agreements with the Wikimedia Foundation or other chapters where a board member has previously served on one of their committees Dialog ballons icon.svg Discuss

Activities as an ordinary Wikimedia project editor, including trusted editors like Administrators, are not considered to create a conflict of interest. Dialog ballons icon.svg Discuss

Disclosure

Given the limited number of third parties we deal with, it is not considered necessary to have a register of interests or any annual declaration. Dialog ballons icon.svg Discuss

However, where we are discussing a relationship with a third party, any board member's prior relationship which may create a potential conflict of interest must be discussed with the Company Secretary or the full board before any decision is made. Where a decision is being made by an initiative leader, it should be raised with them, and they should discuss the matter with the Company Secretary or the full board.

The board should consider the privacy rights of individual board members when discussing conflicts of interest. Appropriate use should be made of in camera board meetings and private discussions with board officers.

If, after discussion, it is concluded that a board member has a conflict of interest in a proposed transaction, the decision should be considered by the Board. The conflicted member should excuse themselves from any vote on the transaction and will not be counted as part of the quorum. They may take part in an initial discussion, but the final decision should be made by the remainining unconflicted board members following a final in camera discussion. If a transaction is approved, the Board should ensure that appropriate controls are in place.

Expenses

Expenses will only be reimbursed if they are approved in principle prior to the expense, are reasonable, are on the proper form and supported by receipts as appropriate and are properly authorised. Board members are expected to keep the expenses they incur to the lowest reasonable level.

Travel by private motor vehicle or bicycle will be reimbursed at the standard HMRC rates. Travel by train or aeroplane will be reimbursed for standard class only.

Expense claims must be accurate. Submitting a false or misleading claim, even if not paid, will be considered a serious disciplinary matter.

Authorisers should only pay claims where they have been properly completed.

Benefits

Board members may not accept non-trivial gifts in connection with Wikimedia UK activities.

If, for example, a partner organisation offers to pay for a lunch to discuss joint activities then this may be acceptable, but a judgement should always be made as to whether the gift is appropriate. Where it could be perceived as impairing the ability of the board member to make independent decisions, at the time or in the future, in the interests of the chapter, then the gift should be declined.

Board members will not be eligible to receive any prizes in connection with chapter initiatives.

Disciplinary actions

When board members nominate themselves as candidates for election, they are informed of their duties as trustees, including their duty to avoid conflicts of interest.

If a Board member does not comply with these Rules with no reasonable excuse, the Board will consider disciplinary action against the board member. Board members will normally be required to pay back any amounts which have been improperly received.

In extreme cases, disciplinary matters may include removal of membership and hence directorship under Article 4.