When a conflict of interest (COI) occurs a councillor must examine the conflict with a goal to making a decision that will enhance the faith of the public in the ethical, transparent and accountable decisions of council.

Councillors can be involved with a range of community organisations without unduly impacting on their ability to carry out their role as councillor. However, they have a positive obligation to deal with any real or perceived conflict of interest in a transparent and accountable way.

The flowchart outlines the steps to be taken when a councillor identifies that they have a real or perceived conflict of interest in a matter before council.

The nature of the conflict of interest and how the councillor dealt with the conflict must be clearly described in the minutes. This openness and accountability will build community confidence in council’s decision making processes.

Legislation extract

• Local Government Act 2009 – Councillor’s conflict of interest at a meeting
  
  

  173 Councillor’s conflict of interest at a meeting (1) This section applies if a matter is to be discussed at a meeting of a local government, or any of its committees, and a councillor at the meeting— ((a) has a conflict of interest in the matter (the real conflict of interest); or (b) could reasonably be taken to have a conflict of interest in the matter (the perceived conflict of interest). A conflict of interest is a conflict between— (a) a councillor’s personal interests; and (b) the public interest; that might lead to a decision that is contrary to the public interest. (3) The councillor must deal with the real conflict of interest or perceived conflict of interest in a transparent and accountable way. (4) Without limiting subsection (3), the councillor must inform the meeting of— (a) the councillor’s personal interests in the matter; and (b) if the councillor participates in the meeting in relation to the matter, how the councillor intends to deal with the real or perceived conflict of interest. (5) Subsection (6) applies if a quorum at the meeting can not be formed because the councillor proposes to exclude himself or herself from the meeting to comply with subsection (3). (6) The councillor does not contravene subsection (3) by participating (including by voting, for example) in the meeting in relation to the matter if the attendance of the councillor, together with any other required number of councillors, forms a quorum for the meeting. (7) The following must be recorded in the minutes of the meeting, and on the local government’s website— (a) the name of the councillor who has the real or perceived conflict of interest; (b) the nature of the personal interest, as described by the councillor; (c) how the councillor dealt with the real or perceived conflict of interest; (d) if the councillor voted on the matter—how the councillor voted on the matter; (e) how the majority of persons who were entitled to vote at the meeting voted on the matter. (8) For subsection (2), a councillor who is nominated by a local government to be a member of a board of a corporation or other association does not have a personal interest merely because of the nomination or subsequent appointment as the member. (9) To remove any doubt, it is declared that nonparticipation in the meeting is not the only way the councillor may appropriately deal with the real or perceived conflict of interest in a transparent and accountable way.