114Conflict of interest

114 Conflict of interest (1) A member has a conflict of interest in a question arising for decision by the audit committee, council, council committee or local authority if the member or an associate of the member has any of the following interests in how the question is decided: (a) a direct interest; (b) an indirect financial interest; (c) an indirect interest by close association;

Local Government Act 2019 69 (d) an indirect interest due to conflicting duties. (2) However, each of the following is not a conflict of interest: (a) an interest that the member or associate shares in common with the general public or a substantial section of the public; (b) an interest as an elector or ratepayer that the member or associate shares in common with other electors or ratepayers; (c) an interest so remote or insignificant that it could not reasonably be regarded as likely to influence a decision. direct interest means an interest that occurs when a member is likely to be directly affected if the matter is decided in a particular way. Example for definition direct interest A company controlled by the member is tendering for a contract that is being discussed by the council. indirect financial interest means an interest that occurs when a member is likely to receive a benefit or incur a loss because another person has an interest. Example for definition indirect financial interest The member has shares in, or is employed by, a company that is tendering for a contract that is being discussed by the council. indirect interest by close association means an interest that occurs when an associate of a member has a direct or indirect interest, or a resident of the member's household has a direct interest. Examples for definition indirect interest by close association 1 The member's sibling is suing the council and the council is considering whether to settle the matter. 2 A resident of the member's household is tendering for a contract that is being discussed by the council. indirect interest due to conflicting duties means an interest that occurs when a member is a director, partner, agent, trustee, manager, office holder or employee of a person or entity, including a non-profit body or association, that has a direct interest. Examples for definition indirect interest due to conflicting duties 1 The member is a director of a non-profit body or association that is seeking a sponsorship or donation being discussed by the council.

Local Government Act 2019 70 2 The member is an employee of a non-profit body or association that is tendering for a contract being discussed by the council.