Difference between revisions of "Non-Profit Directors (Societies Act FAQs)"
Jump to navigation
Jump to search
| Line 45: | Line 45: | ||
==What is a conflict of interest?== | ==What is a conflict of interest?== | ||
A conflict of interest is a situation in which an individual or organization is involved in multiple interests that may be incompatible, where acting upon one interest could compromise another. In the legal context, this term is used to describe a situation in which a person has a duty to act in the best interests of an organization or party, yet they may have personal interests that conflict with that duty. For example, a board director voting on an increase in salary for a family member who works for the society. | A conflict of interest is a situation in which an individual or organization is involved in multiple interests that may be incompatible, where acting upon one interest could compromise another. A conflict of interest includes not only a material interest but the perception of an interest. In the legal context, this term is used to describe a situation in which a person has a duty to act in the best interests of an organization or party, yet they may have personal interests that conflict with that duty. For example, a board director voting on an increase in salary for a family member who works for the society. The new Societies Act requires societies to keep records of any conflicts of interest. You can find a policy in our resources page on the lawfornonprofits.ca website. | ||
==What is an ex-officio director (unofficial director)?== | ==What is an ex-officio director (unofficial director)?== | ||