Board Policy 20: Conflict of Interest

Legal References:

 

Related References

 

1. Municipal Conflict of Interest Act
The Municipal Conflict of Interest Act applies to district school board Trustees. The Act describes specific circumstances under which a Trustee’s direct, indirect or deemed pecuniary (financial) interest requires that a Trustee conduct themselves in a prescribed manner.

Section 2.1 of the Trustee Code of Conduct requires that a Trustee discharge their duties without conflict of interest. Article 6.3 of the Board’s By-law acknowledges that Trustees are bound by the Code, and the Municipal Conflict of Interest Act, as further described in this Conflict of Interest Policy.

1.1 Indirect Interest
Section 2 of the Act provides a definition of an indirect financial interest:

For the purposes of this Act, a member has an indirect pecuniary interest in any matter in which the council or local board, as the case may be, is concerned, if,
    1. the member or his or her nominee,
      1. is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public,
      2. has a controlling interest in or is a director or senior officer of, a corporation that offers its securities to the public, or
      3. is a member of a body,
        that has a pecuniary interest in the matter; or
    2. the member is a partner of a person or is in the employment of a person or body that has a pecuniary interest in the matter.
1.2 Deemed Pecuniary Interest
A Trustee who has a parent, spouse or child with a direct or indirect interest, of which the Trustee is aware, will be deemed to have a conflict in the same manner as if the interest of the parent, spouse of child were their own, and will therefore be respond to the conflict in accordance with the Act and this policy.
 
1.3 This policy adopts the following definitions from the Act:
 
“Parent” means “a person who has demonstrated a settled intention to treat a child as a member of his or her family whether or not that person is the natural parent of the child”.

“Spouse” means “a person to whom the person is married or with whom the person is living in a conjugal relationship outside marriage.”

“Child” means “a child born within or outside marriage and includes an adopted child and a person whom a parent has demonstrated a settled intention to treat as a child of his or her family.”

1.4 Trustee Obligations at Board and Committee Meetings
The Act states:

5 (1) Where a member, either on his or her own behalf or while acting for, by, with or through another, has any pecuniary interest, direct or indirect, in any matter and is present at a meeting of the council or local board at which the matter is the subject of consideration, the member,
    1. shall, prior to any consideration of the matter at the meeting, disclose the interest and the general nature thereof;
    2. shall not take part in the discussion of, or vote on any question in respect of the matter; and
    3. shall not attempt in any way whether before, during or after the meeting to influence the voting on any such question.
(2) Where the meeting referred to in subsection (1) is not open to the public, in addition to complying with the requirements of that subsection, the member shall forthwith leave the meeting or the part of the meeting during which the matter is under consideration.

Trustees have a statutory duty to comply with Section 5(1), and subsection 5(2) if meeting in camera, when they have a direct personal financial interest in a matter before the Board, and also when they have an indirect or deemed financial interest.

1.5 Trustee Obligations with Staff
A Trustee with a direct, indirect or deemed pecuniary interest in any matter that is being considered by an officer or employee of the Board, or by a person or body to which the Board has delegated a power or duty, shall not use their office in any way to attempt to influence any decision or recommendation that results from consideration of the matter.

1.6 Exceptions
The Municipal Conflict of Interest Act allows for certain exceptions to the duty to comply with the disclosure and non-participation requirements. These exceptions include matters:
      • in respect of an allowance for attendance at meetings, or any other allowance, honorarium, remuneration, salary or benefit to which the Trustee may be entitled by reason of being a Trustee;
      • by reason of the Trustee having a pecuniary interest which is an interest in common with electors generally; or
      • by reason only of an interest of the Trustee which is so remote or insignificant in its nature that it cannot reasonably be regarded as likely to influence their decision-making.
1.7 Absence from Meeting
Where a Trustee has failed to disclose an interest by reason of their absence from the meeting, the Trustee shall disclose the interest and otherwise comply with the requirements of the Act and this Policy at the first meeting of the Board that they next attend.

1.8 Registry of Written Statements
At a meeting at which a Trustee discloses an interest, or as soon thereafter as possible, the Trustee shall file a written statement of the interest and its general nature with the Secretary of the Board, using the form attached as Appendix A to this Policy.
 
Each statement filed shall be kept in a registry, which shall be made available for public inspection.

1.9 School Boards Collective Bargaining Act
The School Boards Collective Bargaining Act creates a framework for central and local bargaining of collective agreements with the Board’s unionized staff. Under the Act, issues subject to central bargaining are to be negotiated by the Ontario Public School Boards Association (”OPSBA”) as the designated employer bargaining agency for English-language public boards. The negotiated terms take effect upon ratification by OPSBA, and agreement by the Crown, and do not come before the Board of Trustees for their approval.

Matters not within the scope of central bargaining are bargained locally by school board staff. A negotiated agreement will be submitted to the Board of Trustees for their approval, and will only take effect upon ratification by the Board.

It is possible for a Trustee to have a deemed direct pecuniary interest in negotiations where the Trustee’s spouse, parent or child is a member of a collective bargaining unit which is party to an agreement with the Board, and where the terms of the agreement are subject to ratification by the Board. As such terms would be considered by the Board in camera, a Trustee with a deemed conflict of interest would be required to comply with Sections 5(1) and (2) of the Municipal Conflict of Interest Act.
 
Appendix A - Trustee Declaration of Conflict of Interest
 
Issued April 2024