Conflict of interest | 5A. (1) Subject to subsection (2) below, where, whether before or during any meeting of a Board or any committee of theirs, any member of the Board or of such committee becomes aware that he or any person connected with him has (whether directly or indirectly) a material interest in or relating to any matter to be or being considered by the Board or, as the case may be, the committee, he shall declare such interest and withdraw from the meeting during such consideration and shall not vote on any question relating to the matter. (2) Nothing in subsection (1) above shall (a) require a parent member or staff member of a Board or committee to declare an interest or withdraw; or (b) prohibit him from voting, in relation to any matter where his interest exists only by reason of his being such a member.
(3) Any person who is, by virtue of section 5 of this Act, entitled to attend and speak at any meeting of a Board, who becomes aware that he or any person connected with him has (whether directly or indirectly) a material interest in any matter being considered by the Board shall declare such interest and his declaration shall be recorded in the minutes of the meeting. (4) Section 346(2) of the Companies Act 1985 (meaning of "connected person") shall apply for the purpose of determining whether a person is connected with (a) a member of a Board or, as the case may be, a member of any committee of theirs; and (b) any person mentioned in subsection (3) above as being entitled to attend and speak at a meeting, as it applies for the purpose of determining whether a person is connected with a director of a company; and for such purpose, references in that section to a director of a company shall be construed as if they were references to, as the case may be, a member of the Board or of such committee, or a person mentioned in paragraph (b) above.
(5) The validity of any proceedings of a Board or committee shall not be affected by any failure to comply with this section. |
Section 5A: CONFLICT OF INTEREST This section introduces conflict of interest provisions to members of School Boards and their committees, and to persons entitled to attend and speak at such meetings. Under this section, Board members and members of committees constituted by the Board must declare any material interest they, or a person connected with them, have in relation to any matter being considered; must withdraw from meetings where such a matter is under consideration; and must not vote on any question relating to the matter. In addition, any person entitled to attend and speak at Board meetings by virtue of section 5 of the 1988 Act (i.e. an officer of the education authority, local councillors whose wards fall partly or wholly in the catchment area of the school and the headteacher) must similarly declare any material interest they, or a person connected with them, have in relation to any matter being considered by the Board. Such declaration must be recorded in the minutes. The only exception from the requirement to declare a material interest is an interest which arises solely from membership of the Board as a parent or staff member. Section 5A(1) - It is for individual members to decide the circumstances under which such an interest should be declared. The section does not restrict such interest to the purely financial, but requires the declaration of "material" interests. This might, for example, be in terms of association with an individual or a company being discussed by the Board, or where the member concerned or a party connected to them stands to gain an advantage, financial or otherwise, as a result of a decision taken by the Board. Section 5A(2) provides that nothing in subsection (1) shall require a parent member or staff member of a Board or committee to declare an interest or withdraw, or prohibit him from voting in relation to any matter where his interest exists only by reason of his being a parent or staff member. Thus a person's interest in the school as a parent or a member of staff does not prevent their participation. Section 5A(4) provides that section 346(2) of the Companies Act 1985 (meaning of "connected person") applies for the purpose of determining whether a person is connected with a Board or committee member or any person mentioned in subsection (3) as being entitled to attend and speak at a meeting, as it applies for the purposes of determining whether a person is connected with a company director. The definition in section 346(2) includes a person's spouse, children and stepchildren, as well as a range of corporate bodies and other persons associated with the person or his spouse, children or stepchildren. |