Conflict of interest policy

The purpose of this policy is to protect the integrity and reputation of Leamington and Warwick Musical Society (LWMS), its Trustees, Management Committee members, and volunteers (collectively, "Members"). This policy is meant to supplement good judgment, and Members should respect its spirit as well as its wording.

All Members must strive to avoid any conflict of interest between the interests of LWMS on the one hand, and personal, professional, and business interests on the other. The Charity Commission defines a conflict of interest as "any situation in which a trustee’s personal interests or loyalties could, or could be seen to, prevent them from making a decision only in the best interests of the charity.”

Examples of conflicts of interest

  • Direct financial gain, such as when a committee member has shares in a business that may be awarded a contract to provide services for the organisation.
  • Conflict of loyalties, such as when a trustee is also on the committee of another organisation that is competing for the same funding, or a production team member is in a relationship with an auditionee when there is a decision to be taken on casting;
  • Indirect financial gain, such as employment by the charity of a spouse or partner of a committee member, where their finances are interdependent;
  • Non-financial gain, such as when a trustee is auditioning for a role in a production.

What a conflict of interest is not

It’s very common, even at the mere mention of a conflict of interest, for people to start thinking suspiciously of the individuals concerned having covert agendas and disreputable schemes for greedy selfish gains.

So we need to be absolutely clear that there's nothing immoral or illegal in conflicts of interest. On the contrary, they are absolutely normal and inevitable in individuals and groups who are enthusiastic, active and dynamic in their interests – exactly the kind of people who make good charity Trustees and volunteers.

Impropriety and illegality only come in when what would otherwise be entirely legitimate conflicts of interest are not properly declared, acknowledged and managed.

It is therefore essential that all Members declare any conflicts of interest that they think they might have (“If in doubt, declare it”) and are very accepting and supportive of the conflicts of interest declared by other Members. A well-maintained Register of Conflicts of Interest is the best defence against suspicions or accusations of impropriety against individual Members.

Trustees and Management Committee members

Upon appointment, a full disclosure of interests such as relationships and posts held, that could potentially result in a conflict of interest. must be made by all Trustees or Management Committee members.

All declarations of conflicts of interest will be treated with appropriate confidentiality, and considered by the Trustees to assess the level of risk to LWMS and what actions need to be put in place to eliminate or, at least, mitigate the risk. In more complex cases, the Trustees may appoint someone to look into the matter in more detail. Any Trustee or Management Committee member who is implicated in a conflict of interest, whether directly or as a connected person, may not participate in the assessment of the risk but may be called by the person undertaking the assessment to provide further details or answer specific questions. Independent external moderation will be used where conflicts cannot be resolved through this procedure.

Members may, however, participate in general discussions from which they may indirectly benefit, for example where the benefits are universal to all members, or where the benefit is minimal to individual trustees.

All declarations of conflicts of interest will be recorded in the LWMS Register of Conflicts of Interest, even if, having considered the declaration, the Trustees conclude that the declared conflict of interest presents no significant risk to LWMS.

Meetings and activities

In the course of meetings or activities, all Members must disclose any interests in a transaction or decision where there may be a conflict between the best interests of LWMS and the Member's best interests or a conflict between the best interests of two organisations with which the Member is involved.

After disclosure, a Member may be asked to leave the room for the discussion and may not be able to take part in the decision depending on the judgment of the other Members present at the time. Any such disclosure and the subsequent actions will be noted where a meeting is formally minuted.

Register of Conflicts of Interest

LWMS will maintain a Register of Conflicts of Interest which will contain, as a minimum, the following information:

  • The date on which the conflict of interest was first reported, supplemented where appropriate by the dates on which any changes to the conflict of interest were reported, including the date on which the conflict of interest ceased to be an issue. Once reported, a conflict of interest will remain “on the record” for a minimum of 3 complete reporting years after the conflict of interest ceases to exist (eg: if the individual concerned, or any connected persons, ceases to be involved with the charity);
  • The name of the individual involved and, in the case of a conflict of interest involving one or more connected persons, the names of those connected persons and their relationships;
  • The position/role/responsibilities within LWMS of the individual involved;
  • The type of conflict of interest (eg: personal benefits, family involvement, business involvement, other);
  • Details of the conflict of interest, including its potential impact on LWMS;
  • Mitigation of the conflict of interest – the steps taken by the Trustees to ensure that the conflict of interest does not adversely influence the charitable activities of LWMS.

The Register of Conflicts of Interest shall also be used to record all gifts of a value over £20 received by Members.

Data Protection

The information provided will be processed in accordance with data protection principles as set out in the General Data Protection Regulations (GDPR) and the Data Protection Act (DPA). Data will be processed only to ensure that Members act in the best interests of LWMS. The information provided will not be used for any other purpose.

The Register of Conflicts of Interest will be accessible to all Trustees and Management Committee members.

Although LWMS is not governed by the Freedom of Information Act, the Register will also be accessible to the members of LWMS under the same principles as apply to requests under the Freedom of Information Act, namely:

  • The Trustees reserve the right not to disclose details of declared conflicts of interest where such disclosure would compromise the right to privacy of the individual(s) concerned;
  • The Trustees reserve the right not to disclose details of declared conflicts of interest which involve commercially sensitive information;
  • Requests from members must be for specific information in pursuit of a legitimate concern and not casual enquiries just to see what the Register contains.

This policy was reviewed by the LWMS committee on 4 November 2024, and will be further reviewed at least every 2 years.