Is this an acceptable conflict of interest?

I am concerned over the governance of a charity which has a major contract to provide services to the Council of which I am an elected member. The charity was established last year, specifically to take up this contract, and is a 'local offshoot' of a previously established charity which already existed to supply similar services to another Council. There are now three separate bodies - charities for each of the 2 contracts, plus a holding company which is linked to both. The Managing Director of the holding company (ie the boss of the whole organisation) was made a trustee of the charity serving my Council - and is incidentally also a trustee of the charity serving the other Council. I find this all very strange - that the 'head of paid service' can also be a trustee, especially in circumstances where presumably the individual was involved in the appointment of (other) trustees. Also, in response to a recent written question to the company from a member of the public about the existence and role of the 'local trustees', the MD responded with some info about the other trustees but added that as she was also a trustee any comments or complaints to trustees could be directed to her ! I have been unable to see a copy of the charity's governing documents, so I don't know what they say about allowing payments, and nor do I know whether the organisation has cleared this issue with the Charity Commission. However, i am concerned about governance, accountability and conflict of interest issues and would welcome your comments.

To view the full item you must:

Login

with your Networks Online username and password.

If you are not a subscriber, register your interest in Experts Online.


Please note that Experts Online is designed to provide guidance in good faith at the stated date, but without accepting liability. In individual circumstances it may be necessary to seek professional advice.
EOL logo
Experts Online - a service of Networks Online
This attribution must not be removed.
© Networks Online 2008

Expert profile

c.cattell's picture

Mini biog

Charlie Cattell is a specialist in legal and governance matters relating to social enterprises, charities and voluntary organisations, assisting a wide range of groups with legal structures, organisational management, and regulatory issues.