Introduction

A conflict of interest is any situation in which a trustee’s personal interests or loyalties could, or could be seen to, prevent the trustee from making a decision only in the best interests of the charity.

Trustees have a personal responsibility to declare conflicts of interest if they are to fulfil their legal duty to act only in the best interests of the charity.

Charity’s Governing Document

The memorandum of association of J W Sly & Sons (Northleach) Charitable Trust states that whenever a Trustee has a personal interest in a matter to be discussed at a meeting of the Board of Trustees or a Committee of Trustees, the Trustee concerned must:

a) declare an interest at or before discussion begins on the matter and

b) withdraw from the meeting for that item unless expressly invited to remain in order to provide information and

c) not be counted in the quorum for that part of the meeting and

d) withdraw during the vote and have no vote on the matter

Interests that trustees should declare

Conflicts of interest usually arise where either:

● there is a potential financial or measurable benefit directly to a trustee, or indirectly through a connected person

● a trustee’s duty to the charity may compete with a duty or loyalty they owe to another organisation or person

● these may include business and personal interests and those of a Trustee’s spouse, partner, family or close relative

Conflicts of loyalty

Conflicts of loyalty may arise because, although the affected trustee does not stand to gain any benefit, the trustee’s decision making at the charity could be influenced by their other interests. Some conflicts of loyalty arise because a trustee has a competing legal obligation or duty to another organisation or person. Others result from conflicting loyalties which trustees owe or may feel towards family, friends or other people or organisations who are part of the trustee’s network. A conflict of loyalty could also arise where the religious, political or personal views of a trustee could interfere with the ability of the trustee to decide the issue only in the best interests of the charity.

Benefits to trustees

Trustees can only benefit from their charity where there is an explicit authority in place before any decision conferring trustee benefit is made. Trustees are required to obtain legal authority before any transaction involving trustee benefit is undertaken.

Examples of benefits to trustees are where the trustees decide to:

● sell, loan or lease charity assets to a charity trustee

● acquire, borrow or lease assets from a trustee for the charity

● pay a trustee for carrying out their trustee role

● pay a trustee for carrying out a separate paid post within the charity, even if that trustee has recently resigned as a trustee

● pay a trustee, or a connected person, for providing a service to the charity - this covers anything that would be regarded as a service and includes legal, accountancy or consultancy services through to painting or decorating the charity’s premises, or any other maintenance work

● pay a trustee, or a connected person, for providing goods to the charity, such as paint, timber, sports equipment, consumables or stationery

● employ a trustee’s spouse or other close relative at the charity (or at the charity’s subsidiary trading company)

● make a grant to a service user trustee, or a service user who is a close relative of a trustee

● allow a service user trustee to influence service provision to their exclusive advantage

Procedures to follow when a trustee is subject to a conflict of interest

● We will record any pecuniary or other business interest (including those related to people we are connected with) that we have in connection with the Charity business in a Register of Interests which will be updated annually

● We accept that the Register of Interests may be published on the Charity’s website.

● We will have Conflicts of Interest as an Agenda Item at any meetings we hold and we will declare any conflict of interest at the start of any meeting. A record of any discussions and decisions made in relation to the conflict will be made

● If any such conflicted matter arises in a meeting we will offer to leave the meeting for the appropriate length of time

● If for any reason trustees decide against removing the conflict of interest, they will consider how to make their decision only in the best interests of the charity. Trustees will follow any legal or governing document requirements which say how the conflict of interest must be handled

Monitoring and Enforcement of Policy

The requirements set out within this Policy shall be monitored by the Chair and Vice Chair of the Charity.

This Policy will be reviewed by the Board of Trustees annually.

This Policy is to be read in conjunction with the Charity’s Code of Conduct Policy.

Adopted by the Board of Trustees : 14th May 2023

Signed by the Chair : C Hancock