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A CharityConnect User Posted 6 years ago

I am new to this website and am interested in setting up an incorporated charity to help older people to have a voice in my local area. I am at the stage of thinking about trustees and would welcome any information about possible conflicts of interest. My father has worked in the business sector for many years and would make an extremely good trustee. However, if I am the charity founder and also the CEO of the charity, would this be seen as a conflict of interest?
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Jonathan Grosskopf

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Freelance Chartered Accountant specialising in helping charities at as above 6 years ago

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Yes definitely. However if there are enough "independent" trustees who have no conflict of interest i.e. being directly related to you as CEO, then your father can officially "opt out" of any discussion where the conflict would possibly influence a decision. He would need to declare the conflict of interest at the beginning of the agenda of each meeting and this would need to be noted in the minutes, and then it would be up to the other trustees to make a decision as to whether your father needs to leave the meeting whilst this item on the agenda is being discussed or not.

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Peter Spencer

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Solicitor at Wellers Law Group 6 years ago

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Hi Catherine
I completely agree with Madeleine's response below, whilst you can limit any instances of conflict, by leaving your father out of any decisions regarding your appointment, salary or decisions (and have a Conflicts Register reflecting this conflict - see template from SCC below http://www.smallcharities.org.uk/fileadmin/user/files_documents/specimen-conflict-of-interest-policy-declaration-form-and-register-of-interests-for-charity-trustees__1_.pdf), it is likely that, as CEO, there may be too many instances of potential conflict between you and your father for the appointment to be 'workable', (particularly if he is Chair!).
As Madeleine suggested he could come on board as an external advisor and be invited to attend certain pertinent parts of Trustee meetings (if the Trustees agree) but obviously without any voting rights.
Best of luck!
Peter
   

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Madeleine Cassidy

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Chief Executive at The Bobath Centre 6 years ago

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Hi Catherine, 
It may be that you need to think this through a bit more... Technically, although it's not recommended, family members can serve together on boards. 
The issue centres on ensuring each trustee can act and vote independently and not be pressured by a close relationship to act in a certain way. There is, however, the potential for conflict of interest and it would be incumbent on the charity to manage a conflict of interest situation, through its policies and procedures. 
Being honest, ideally it would be better to attract external trustees instead. Perhaps there's another role, such as an advisor that your dad could take?
From a CEO perspective, if your dad became a trustee, he has the chance of being Chair. This would mean he would be your direct line manager and boss effectively. Not sure about you, but I would hate that situation.
Actually, if the scenario arose where you are the CEO and he's the Chair, would this create a positive dynamic for the rest of the board? Lots to think about.
Good luck with whatever you decide. Message me if you would like to talk this through.
Madeleine
 
 
 

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Andrew Herkes

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Director / Consultant at 6 years ago

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Madeleine Cassidy   Frankly I would think all external trustees would give a more open appearance to the outside world but you can not always choose who will woek. It is better if you don't live at the same address and of course  if you are married with different surmames.
If you go ahead do not be afraid to make evryone at any meeting aware of your relationship and be very aware that anything either of you do may attract additional scrutiny
 

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Anna Day

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CEO at Successful Coaching 6 years ago

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Andrew Herkes   I would suggest as Madeleine said, recruiting as a mentor or coach for you in your new role. It would be impossible for him to act without conflict of interest, since the purpose of trustees is to oversee the delegated work to the paid officers.

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