The Board wishes to avoid both actual conflicts of interest--situations where their loyalties of a member of the Board may be divided, or where financial or other personal interests may conflict with a member of the board’s duty. The board also wishes to avoid any appearance of a possible conflict of interest, whether or not such a conflict may actually exist.

Because the complexity and diversity of personal relationships is extensive, and the perception of conflict of interest may vary from one individual to another, the most effective means to address conflict of interest is to establish a system under which board members disclose and obtain evaluation of potential conflict. All members of the Board are therefore bound to disclose any possible interest they may have in any question under discussion. Interests might include, but are nor necessarily limited to, financial interests or personal interests (such as a blood relationship or close social ties with the family of a pupil whose case has for some attention come to the board’s attention).

A person has a financial interest if that person has, or may expect to have, any of the following relationships with any individual or entity with which the school has an actual or potential business relationship, directly or indirectly, through business, investment or family:

a. an ownership or investment interest
b. a compensation arrangement
c. a contractual relationship
d. a debtor or creditor relationship

After disclosure of all material facts to the Board relating to any actual or possible conflict of interest, and after any discussion with the interested person, the Board member shall leave the Board while the determination of a conflict of interest is discussed and voted upon. The fact of a disclosure of a possible interest and the board’s decision will be recorded in the Board’s minutes, but the nature of the possible interest need not be recorded.

a. If the remainder of the Board considers that the likelihood of an actual or apparent conflict of interest is negligible, the remainder of the Board may then vote to invite the Board member to return.
b. If the remainder of the Board considers that an actual or apparent conflict of interest exists, the board member shall proceed as follows:
 a. An interested person may make a presentation at a Board meeting, but after such presentation, the interested person shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest.
 b. The Chairman of the Board shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.
 c. After exercising due diligence, the Board shall determine whether the school can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest.
 d. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the Board shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the school's best interest and for its own benefit and whether the transaction is fair and reasonable to the school and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination.