Conflict of Interest Policy for a Charitable Company Limited By Guarantee
This Conflict of Interest Policy for a Charitable Company Limited By Guarantee is one of two
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Conflicts of interest affect charities of all types and sizes. Such conflicts can give rise to trustee board decisions which are against the charity’s best interests, or which have an adverse impact on its reputation, public trust or confidence in it. Decisions which are affected by a conflict of interests can be legally invalid and/or challengeable. However, where individual trustees identify conflicts of interest, the trustee board can prevent its decisions from causing such harm to the charity. The Charity Commission expects trustees to identify and deal with such conflicts in certain ways to ensure that decisions are only made in a charity’s best interests. Failure to act properly where there is a conflict of interest is a breach of the trustees’ legal responsibilities.
We recommend that, as good practice, a trustee board should adopt a written conflict of interest policy as a tool to assist in ensuring that the
This form of policy can be adapted to meet the particular needs and circumstances of your charity as necessary to help ensure that decisions are not adversely affected by a trustee’s conflict of interest.
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