1. Purpose
The purpose of this policy is to help committee members of Capricorn Ballet & Arts Academy (CBAA) to effectively identify, disclose and manage any actual, potential or perceived conflicts of interest in order to protect the integrity of CBAA and manage risk.
2. Objective
The Capricorn Ballet & Arts Academy Committee (called the committee in this policy) aims to ensure that committee members are aware of their obligation to disclose any conflicts of interest that they may have, and to comply with this policy to ensure they effectively manage those conflicts of interest as representatives of CBAA.
3. Scope
This policy applies to all committee members of CBAA as well as the studio principals who will organise events at different times.
4. Definition of conflicts of interests
A conflict of interest occurs when a person’s personal interests’ conflict with their responsibility to act in the best interests of CBAA.
Personal interests include direct interests, as well as those of family, friends, or other organisations a person may be involved with or have an interest in (for example, the advancement of their own studio).
It also includes a conflict between a committee member’s duty to CBAA committee and another duty that the committee member has (for example, to another Dance Academy). A conflict of interest may be actual, potential or perceived and may be financial or non- financial.
These situations present the risk that a person will make a decision based on, or affected by, these influences, rather than in the best interests of CBAA.
Therefore these situations must be managed accordingly.
5. Policy
This policy has been developed to address conflicts of interest affecting CBAA.
Conflict of interest are common, and they do not need to present a problem to CBAA as long as they are openly and effectively managed.
It is the policy of CBAA, as well as a responsibility of the committee, that ethical, legal, financial or other conflicts of interest be avoided and that any such conflicts (where they do arise) do not conflict with the obligations of CBAA.
Capricorn Ballet & Arts Academy will manage conflicts of interest by requiring committee members to:
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- avoid conflicts of interest where possible
- identify and disclose any conflicts of interest
- carefully manage any conflicts of interest, and
- follow this policy and respond to any breaches.
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5.1 Responsibility of CBAA committee
The committee is responsible for:
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- establishing a system for identifying, disclosing and managing conflicts of interest,
- monitoring compliance with this policy, and
- reviewing this policy on an annual basis to ensure that the policy is operating effectively.
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CBAA must ensure that its committee members are aware of the ACNC governance standards, particularly governance standard 5, and that they disclose any actual or perceived material conflicts of interests as required by governance standard 5.
Governance Standard 5 requires charities to take reasonable steps to make sure that the following duties apply to Responsible People and that they follow them. The duties can be summarised as follows:
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- to act with reasonable care and diligence
- to act honestly and fairly in the best interests of the charity and for its charitable purposes
- not to misuse their position or information they gain as a Responsible Person
- to disclose conflicts of interest
- to ensure that the financial affairs of the charity are managed responsibly, and
- not to allow the charity to operate while it is insolvent.
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Generally, the duties mean that Responsible People should act with standards of integrity and common sense.
5.2 Identification and disclosure of conflicts of interest
Once an actual, potential or perceived conflict of interest is identified, it must be entered into Capricorn Ballet & Arts Academy’s register of interests, as well as being raised with the committee.
Where every other committee member shares a conflict, the committee should refer to ACNC Governance Standard 5 to ensure that proper disclosure occurs.
The register of interests must be maintained by Pamela Fisher or another responsible person. The register must record information related to a conflict of interest (including the nature and extent of the conflict of interest and any steps taken to address it).
5.3 Confidentiality of disclosures
Access to any disclosure will only be made available to the members of the committee or other responsible persons.
6. Action required to manage conflicts of interest
6.1 Conflicts of interest of committee members
Once the conflict of interest has been appropriately disclosed, the committee (excluding the committee member who has made the disclosure, as well as any other conflicted committee member) must decide whether or not those conflicted committee members should:
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- vote on the matter (minimum action),
- participate in any debate, or
- be present in the room during the debate and the voting.
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In exceptional circumstances, such as where a conflict is very significant or likely to prevent a committee member from regularly participating in discussions, it may be worth the committee considering if it is appropriate for the person conflicted to resign from the committee.
6.2 What should be considered when deciding what action to take
In deciding what approach to take, the committee will consider:
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- whether the conflict needs to be avoided or simply documented
- whether the conflict will realistically impair the disclosing person’s capacity to impartially participate in decision-making
- alternative options to avoid the conflict
- CBAA’s objects and resources, and the possibility of creating an appearance of improper conduct that might impair confidence in, or the reputation of CBAA.
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The approval of any action requires the agreement of at least a majority of the committee (excluding any conflicted committee member/s) who are present and voting at the meeting.
The action and result of the voting will be recorded in the minutes of the meeting and in the register of interests.
7. Compliance with this policy
If the committee has a reason to believe that a person subject to the policy has failed to comply with it, it will investigate the circumstances.
If it is found that this person has failed to disclose a conflict of interest, the committee may act against them. This may include seeking to terminate their relationship with CBAA.
Studios will be prohibited from entering into the CBAA events. If a person suspects that a committee member has failed to disclose a conflict of interest, they must notify Pamela Fisher or another responsible person.
Contacts
For questions about this policy, contact the board or Pamela Fisher by email at pamela.fisher@optusnet.com.au.