The ETI Board
Governance of the ETI
Policy and procedure to identify and deal with any potential conflicts of interest arising between the role of the Board Directors of ETI and other independent activities the Directors may carry out.
| 1.0 | Scope |
| 1.1 | This policy applies to potential conflicts of interest that may arise between the role of a director of ETI and any independent activities that a director may carry out whether as a consultant, adviser, employee, director, trustee or in any other capacity and whether paid or unpaid. |
| 2.0 | What is a potential conflict of interest? |
| 2.1 | Any involvement by a director of ETI with a company or organisation other than the ETI member which the director represents on the ETI Board which in any way relates to or could relate to or impact upon the current, past or future activities, interests or reputation of ETI. |
| 3.0 | What is the process of recognising a potential conflict of interest? |
| 3.1 | When and if a director of the Board proposes to undertake activities that constitute a potential conflict of interest as defined in 2 above, the director shall provide written details to the Director of ETI prior to agreeing to undertake those activities. The Director of ETI will circulate these details to Board Members by email. |
| 3.2 | In addition, and in accordance with current policy, the director shall maintain ETI’s Register of Interests with respect to any directorships or posts he or she may hold other than that of director of the Board of ETI. |
| 4.0 | What is the process of resolution of a conflict of interest? |
| 4.1 | If, upon receipt of the information provided by a director about his/her other commercial interests, another Board member considers that the activities should be referred to the Remuneration Committee he/she should normally inform the Director of ETI within 5 days of being notified of these activities. |
| 4.2 | If the Director of ETI or any Board member considers that the director’s proposed activities are likely to create a significant conflict of interest, the Director of ETI shall refer any areas of doubt to the Remuneration Committee [1] for its advice and guidance. The Director of ETI will at the same time advise the director concerned in writing of the concern that has been expressed and the fact that the matter has been referred to the Remuneration Committee. |
| 4.3 | It is not necessarily the case that a director cannot or should not carry out independent activities that present a potential for conflict of interest. Depending on the severity of risk to ETI, the Remuneration Committee may consider it adequate, that the director concerned continue with the assignment in question, while removing him/herself from any decision, meeting or other duty as director where the conflict could arise. For example, if the director undertook an assignment for a non-member company, which then developed an interest in ETI membership, the director could be removed from any activity or decision relating to this company’s membership application. |
| 4.4 | The views of the Remuneration Committee on any potential conflict of interest will normally be finalised and communicated to the director concerned within 7 working days from the date that the Director of ETI advises them of the issue. Should the members of the Committee be unavailable for extended periods of time, the Director of ETI shall seek alternative Board representatives from the appropriate caucus groups. The director concerned will be entitled to meet with the committee to discuss their views in the event of any disagreement. |
Ends
Approved, ETI Board meeting 24 February 2005
Notes:
- The Remuneration Committee is a sub-committee of the ETI
Board comprised of one Corporate, One Trade Union and one NGO
representative.
See also Remuneration sub-committee terms of reference.
See also:
Back
to ETI Board
back
