Conflict of interest policy

1. Purpose

The purpose of this policy is to help Association members of Flag of Ukraine to effectively identify, disclose and manage any actual, potential or perceived conflicts of interest in order to protect the integrity of Flag of Ukraine and manage risk.

2. Objective

The Flag of Ukraine Association (called the ‘Association’ in this policy) aims to ensure that Association 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 Flag of Ukraine.

3. Scope

This policy applies to the Association members of Flag of Ukraine.

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 the charity.

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, as a shareholder).

It also includes a conflict between a Association member’s duty to Flag of Ukraine and another duty that the Association member has (for example, to another charity). 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 the charity.

Therefore these situations must be managed accordingly.

5. Policy

This policy has been developed to address conflicts of interest affecting Flag of Ukraine.

Conflict of interest are common, and they do not need to present a problem to the charity as long as they are openly and effectively managed.

It is the policy of Flag of Ukraine, as well as a responsibility of the Association, 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 to Flag of Ukraine.

Flag of Ukraine will manage conflicts of interest by requiring Association members to:

• 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.

5.1. Responsibility of the Association

The Association is responsible for:

• establishing a system for identifying, disclosing and managing conflicts of interest across the charity
• monitoring compliance with this policy, and
• reviewing this policy on an annual basis to ensure that the policy is operating effectively.

The charity must ensure that its Association 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.

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 Flag of Ukraine’s register of interests, as well as being raised with the Association.

Where every other Association member shares a conflict, the Association should refer to ACNC Governance Standard 5 to ensure that proper disclosure occurs.

The register of interests must be maintained by the members. 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

The information can only be used for recording, reviewing and managing conflict of interest issues. Access to such documents is controlled and only granted to members with a genuine need to know or in connection with reviewing conflict of interests and related issues. We have obligations under the Privacy Act 1988 to protect your personal information.

6. Action required to manage conflicts of interest

6.1. Conflicts of interest of Association members

Once the conflict of interest has been appropriately disclosed, the Association (excluding the Association member who has made the disclosure, as well as any other conflicted Association member) must decide whether or not those conflicted Association members should:

• vote on the matter (this is a minimum),
• participate in any debate, or
• be present in the room during the debate and the voting.

In exceptional circumstances, such as where a conflict is very significant or likely to prevent a Association member from regularly participating in discussions, it may be worth the Association considering if it is appropriate for the person conflicted to resign from the Association.

6.2. What should be considered when deciding what action to take

In deciding what approach to take, the Association will consider:

• 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
• the charity’s objects and resources, and
• the possibility of creating an appearance of improper conduct that might impair confidence in, or the reputation of, the charity.

The approval of any action requires the agreement of at least a majority of the Association (excluding any conflicted Association 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 Association 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 Association may take action against them. This may include seeking to terminate their relationship with the charity.

If a person suspects that a Association member has failed to disclose a conflict of interest, they must discuss with the person in question and notify the Association

Contacts

For questions about this policy, contact the Association.