Managing a conflict of interest
Learn about processes for the board to manage a conflict of interest.
Conflict of interest
Conflict of interest
Our relationships – with our family, friends, community and organisations – create obligations or responsibilities to others. We call these ‘interests’.
You may have an interest in something:
- for yourself
- on behalf of a relative or friend
- on behalf of an organisation that you’re involved in.
Your interest may influence or could be seen to influence your thinking or behaviour about that thing.
A conflict of interest is a situation where:
Related party financial benefits
When a corporation gives an asset or money to a person or group with a close relationship to the corporation, this is called giving a related party a financial benefit.
Unless it is exempt under the CATSI Act, only the corporation's members can approve giving related party financial benefits.
Related parties
A related party can be an individual. These include:
Officers
An officer of a corporation is someone who is involved in making decisions that affect the business of the corporation and can greatly affect the corporation’s financial standing.