Types of Conflict of Interest
Council members are in conflict, among other situations, if they:
1. Participate in a matter before council where they, or their spouse or child, have a
direct or indirect pecuniary (financial) interest – council members are required to
disclose the interest (e.g. if a member owns a company that the municipality is
considering doing business with), withdraw from the meeting without voting and
not participate in the discussion. Best practice would dictate that the person also
leave the room during discussion on the matter.
2. Use “insider” information that they have acquired in the performance of their
official duties. Members of council cannot use information that is not available to
the public for personal gain or the gain of any other person (e.g. passing on
information obtained through internal discussions about the value of a municipal
property anticipated to be sold).
3. Receive compensation from any person, business or organization for the services
they provide as a council member, or receive compensation to influence another
council member (e.g. receive payment or gifts from a private individual for making
a decision or influencing a decision in your capacity as member of the planning
board).
4. Use their influence as a council member to influence the municipality to enter into
a contract or transaction where they or their immediate family member (spouse or
dependent child) have a direct or indirect pecuniary (financial) interest (e.g.
recommending your spouse’s company to do work for the municipality).
Disclosure at Meetings
The Act sets out the procedures you must follow if a matter in which you have a direct
or indirect pecuniary interest, comes before any meeting in which you are taking part in
your capacity as a member of council, including council meetings and Committee
meetings etc.
Your interest may be direct; for example you are a business owner and council is making
a zoning decision that affects your business. Your interest could also be indirect; for
example your spouse owns or is employed by a business that your municipality is
considering awarding a contract to.
Sometimes a pecuniary interest is not very clear. The first step is to ask yourself whether
you, your spouse, your child or other close family members stand to gain or lose
financially by council’s decision. If you are unsure whether you may have a conflict, your
municipal legal advisor can provide information to you in this area.