Club officers must act in the best interests of their club. A conflict of interest happens when personal interests could affect their ability to make fair decisions.

The Incorporated Societies Act 2022 sets out legal duties for officers to manage and disclose conflicts of interest. Officers include committee members, board members and anyone in a position of influence.

What a conflict of interest is

A conflict of interest can be:

• actual – the officer is directly involved
• potential – the officer may be involved in future
• perceived – others may think the officer is involved

It doesn’t have to involve money or be intentional.

Common types of conflict

Conflicts can arise from:

• Financial benefit – the officer or a close relative could gain financially from a club decision (for example, awarding a contract to their partner’s business)
• Relationships – the officer is involved in decisions about a relative, close friend or related organisation (for example, selecting their own child for a team)
• Competing duties – the officer has obligations to another organisation that conflict with their duty to the club (for example, working for a rival supplier)
• Gifts or benefits – the officer accepts something that could influence, or appear to influence, their decisions

Legal duties for officers

If an officer has an interest in a matter being discussed, they must:

• Disclose the conflict – tell the committee as soon as they’re aware of it
• Step back from decisions – unless the rest of the committee agrees otherwise, they must not vote or sign documents related to the matter
• Record the conflict – the club must keep an Interests Register and present it at the Annual General Meeting (AGM)

Managing conflicts in practice

To manage conflicts of interest well:

• Declare conflicts early – at the start of meetings or when relevant topics arise
• Leave the room – during discussions and decisions about the matter
• Record everything – include details in meeting minutes for transparency

Key actions for clubs

• Set up and maintain an Interests Register
• Include conflict of interest as a standing item in meeting agendas
• Train officers on their duties under the Incorporated Societies Act 2022
• Use clear processes for declaring and managing conflicts

Sport NZ resources

https://sportnz.org.nz/resources/conflicts-of-interest-policy-member-protection/

Related legislation

https://is-register.companiesoffice.govt.nz/