Conflict of Interest Policy
Declaring, recording and managing conflicts so decisions stand up to scrutiny.
- Version
- 1.0
- Last reviewed
- 2026-08-10
- Review
- Annually, at the AGM
- Licence
- CC BY 4.0
A parent's business quotes for the shade sails. The treasurer's partner applies for the paid canteen role. Someone's best friend is pushing hard for one supplier over another. None of these are wrong — but all of them will be talked about in the pickup line, and a committee with nothing written down has no answer.
This policy gives you the answer: it was declared, it's in the minutes, they left the room, here's the vote. That record is what turns an awkward situation into a non-event. It's also the single most useful policy to have before you need it, because writing one mid-argument looks exactly like what it is.
Declaring the interest and then staying in the room "just to explain the background". Explaining the background is influencing the decision. The conflicted person answers factual questions, then leaves — and the minutes say they left. Half a control is worse than none, because it creates a record that looks like diligence and isn't.
How to adopt it
- Fill in the blanks. Everything in [square brackets] is yours to set. Type straight into them below and your answers come through in the Word or PDF download — then read what to change before you put it to a vote.
- Circulate it with the agenda so members can read it before the meeting. A policy sprung on the room gets deferred.
- Move it, second it, record it. Adopting a policy is an ordinary motion. Use this wording:
That the Association adopt the Conflict of Interest Policy (version 1.0) as circulated, effective immediately.
Record the version number in the minutes. When you revise the policy later, that number is what tells you — and your auditor — which text was in force when a decision was made.
What to change before you adopt it
This template is deliberately conservative. Read these before it goes to a vote — a policy your committee can't actually follow is worse than none.
- The gift threshold in clause 7.2. $50 works for most primary school P&Cs. Set it low enough that it means something and high enough that nobody has to declare a coffee.
- Whether a conflicted person leaves the room. Clause 5.1 is deliberately strict. Some small committees soften it to "does not vote". If you do, understand you're trading away most of the protection — and say so out loud when you adopt it, so the decision is deliberate rather than accidental.
- The general-meeting requirement in clause 6.1. Requiring a full general meeting for any transaction with a member's business is strong medicine. If your association does a lot of small business with parents, consider a dollar threshold below which the executive can decide — but keep the quotes and the withdrawal requirements at every level.
- Your constitution and state body rules. Some P&C constitutions and state federation rules already deal with pecuniary interests and may set stricter requirements. Where they differ, they govern.
- Teacher and principal members. If school staff sit on your committee, their duty to the school is a standing interest under clause 3.2 and is worth naming explicitly rather than leaving implied.
These templates are general information for Australian school parent bodies. Your constitution, your state's education department, your state P&C or P&F body, your incorporating legislation and your insurer may all impose requirements that override anything here. Where a policy touches money, children or personal information, have someone qualified look at it before you rely on it.
Licensed CC BY 4.0. You may copy, adapt and redistribute this policy — including for your own association's use — as long as you credit the source. A line reading "Adapted from the Bilby Bunch open policy library (bilbybunch.com/policies)" in your policy footer is plenty.
How this plays out in a meeting
The whole policy compresses into four lines of minutes:
7.2 Shade sail quotes. J. Nguyen declared an interest: the quote from Nguyen Landscaping is from a business owned by their spouse. J. Nguyen answered questions on the specification and left the room at 7.42pm. Three quotes were tabled. Motion: That the Association accept the quote from [supplier] for $8,400. Moved: A. Patel. Seconded: L. Brown. Carried 9–0. J. Nguyen returned at 7.51pm.
That's it. No drama, no suspicion, and a record that answers the question three years from now when someone asks why the spouse of a committee member got an $8,400 job.
Related
- Financial Controls Policy — clause 5.4 there points back to this one.
- Reserves and Investment Policy — for the money this policy protects.