RESOLUTION TO THE Southern Interior Local Government Association

Conflict of Interest

Sponsored by Regional District of Okanagan-Similkameen

WHEREAS the recent Court of Appeal ruling in the case of Schlenker v. Torgrimson found that local elected officials who are also Directors of not-for-profit societies give rise to a fiduciary duty to the societies and in matters relating to funding, the directors financial interests were connected with the societies’ interests as a matter of law;

AND WHEREAS the Court found that the conflict is of a pecuniary (indirect) nature, and therefore of a disqualifying nature when the local government matter relates to money or financial benefits;

AND WHEREAS this decision places local elected officials who volunteer to sit on the Boards of such not-for-profit societies in an untenable position:

THEREFORE BE IT RESOLVED The Regional District of Okanagan-Similkameen requests that the Union of BC Municipalities lobby the Provincial Government to amend Division 6 of the Community Charter to provide as an exception that an elected officials would not be in conflict or have a pecuniary interest by participating or voting on financial matters relating to a Society or other duly constituted not for profit organization simply because the elected official was a Director thereof.

Resolution is recommended by staff and a vote will be held next Thursday