Conflict of Interest policy for MKP UK&I Trustees, Contractors and Employees
The Charity Commission expects trustees to identify and address effectively any conflicts of interest (Col) that affect them or their charity.
Excerpt from MKPUK&I’s Constitution: 7. Conflicts of interest and conflicts of loyalty
An MKP UK&I trustee must:
(1) Declare the nature and extent of any interest, direct or indirect, which he or she has in a proposed transaction or arrangement with the CIO or in any transaction or arrangement entered into by the CIO which has not previously been declared; and
(2) Absent himself or herself from any discussions of the charity trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the CIO and any personal interest (including but not limited to any financial interest). Any charity trustee absenting himself or herself from any discussions in accordance with this clause must not vote or be counted as part of the quorum in any decision of the charity trustees on the matter.
About conflicts of interest
We have a legal duty to act in MKPUK&I’s best interests when making decisions as trustees. If there’s a decision to be made where a trustee has a personal or other interest, this is a conflict of interest and we won’t comply with our duty unless we follow certain steps.
Examples of a Conflict of Interest:
• A trustee benefits financially or otherwise from a charity; either directly, or indirectly through someone with whom she/he has a connection.
• A duty to MKP UK&I competes with a trustee's duty, or loyalty to another organisation or person.
A conflict doesn’t imply something done wrong, but requires actions to prevent interference with trustees; ability to make a decision in the best interests only of the charity. Conflicts of Interest are quite common in charities. MKP UK&I follows a three-step approach - identify, prevent, record - to avert having to overturn decisions later, risking MKP UK&I’s reputation, or having to repay unauthorised payments to trustees.
How to identify a conflict of interest
Legal requirement: you must declare a conflict of interest immediately you are aware of any possibility that your personal or wider interests could influence your decision-making.
Have a standard agenda item at the beginning of each trustee meeting to allow trustees to declare any actual or potential conflicts of interest.
It’s good practice to have a written conflicts of interest policy to:
• tell your existing trustees how to identify and disclose conflicts of interest
• help prospective trustees identify possible conflicts of interest before they’re appointed
Conflicts which have been anticipated and are known are declared in a Conflicts of Interests Reqister
Incoming trustees, contractors and employees are asked to complete a Register of interests to help identify any potential conflicts of interest that may affect them.
How MKP UK&I deals with a conflict of interest
Once a conflict of interest is identified, it is prevented from affecting our decision-making by:
• finding an alternative way forward which doesn't involve the conflict of interest (particularly if the issue is serious)
• taking appropriate steps to manage the conflict (if it’s less serious), which usually means that the person affected does’;t take part in discussions about the issue
How MKP UK&I records a conflict of interest
Conflicts of interest and how they are dealt with are recorded in the minutes of the relevant meeting and explain:
• what sort of conflict of interest it was
• which trustee or trustees were affected
• if any conflicts of interest were known/declared in advance
• Confirmation that those with a conflict withdrew from the discussion
• Confirmation that those with a conflict did not vote on the outcome
Details of payments and benefits to MKP UK&I trustees and people connected to them are declared in the annual return to the Charities commission.
