This policy places obligation on Board members and staff to act honestly and responsibly in carrying out their functions.
It requires that pecuniary interests of Board members and other persons involved in making decisions or giving advice on Board matters be recorded and requires Board members and staff to refrain from taking part in decisions on matters in which they have a pecuniary interest.
CONDUCT OF BOARD MEMBERS AND STAFF
Every Board member and member of staff is expected to act honestly and exercise a reasonable degree of care and diligence in carrying out his or her responsibilities. Although this policy places certain duties on Board members and members of staff, nothing in this policy gives rise to, or can be taken into account in any civil cause of action.
What is a “pecuniary interest”?
- For the purposes of this policy, a pecuniary interest is an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.
- A person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to the matter
Who has a pecuniary interest?
- The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or
- the person, or a nominee, partner or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.
A person is taken to have a pecuniary interest in a matter if:
Disclosure and participation in meetings
- A Board member or member of a committee who has a pecuniary interest in any matter with which the Board is concerned and who is present at a meeting of the Board or committee at which the matter is being considered must disclose the interest to the meeting as soon as practicable.
- The Board member must not take part in the consideration or discussion of the matter.
- The Board member must not vote on any question relating to the matter.
Sanction for non-compliance
Section 42 of the PALMS AUSTRALIA Constitution indicates that the director will be required to vacate his/her position as a Director.