CONFLICT OF INTEREST
As a member of council, you are in a position of trust. The public expects you to act in
the best interests of your municipality. The general rule is that a member’s personal
interests should not conflict with their public duty.
The Municipalities Act sets a standard of good conduct for council members and speaks
to conflict of interest, through section 23.
Section 23 states:
No member of Council shall, subject to section 17, derive any
profit or financial advantage from his position as a member of
Council and, where a member of Council has any pecuniary
interest in or is affected by any matter before the Council, he
shall declare his interest therein and abstain from the voting and
discussion thereon.
Among other things, situations when an individual council member’s personal interest
or the interest of their immediate family (parent, spouse, child) conflict with the
broader municipal interest, would quite likely fulfill the requirement of is affected by
any matter before the council.
There are generally accepted exceptions to conflict, a few examples of these are: where
a member’s interest is so remote that it couldn’t realistically be expected to affect their
judgment, or where the interest is shared with all or most other residents such as in tax
or utility rates (interest in common).
Understanding the rules of the Act allows you to perform your duties without fear of
unintentionally becoming involved in a conflict of interest situation.
Conflict of interest at the municipal level is a municipal matter. The Province is not the
final judge of conflict of interest at the municipal level. The Province can, and does, act
in an advisory capacity on matters of conflict; however, the final decision maker on
matters of municipal conflict of interest cases, should any arise, would be the courts.
An elector or a council can apply to the court if they believe that a council member has
violated the conflict provisions in the Act. The court will hear the evidence and will make
a decision. If the court decides that the member of council violated the Act, the member
could be disqualified from council and might be required to immediately resign.
A best practice, as used by some municipalities on PEI, is to include as a standard
agenda item, a line wherein the mayor/chairperson inquires as to whether any member
has a conflict involving any item on the agenda at the beginning of the meeting. Our
online sample agenda reflects this format. Frequently asked questions about conflict of
interest are answered in Appendix B.