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News > General > Managing Material Personal Interests

Managing Material Personal Interests

Conflicts of interest in P&C committees

At a glance 

Committee members must act in the best interests of their P&C. 
If a committee member has a material personal interest in a matter being considered, it must be disclosed and managed properly. 

In simple terms, this means: 

  • the interest is declared 
  • the disclosure is recorded in the minutes 
  • the member leaves the meeting discussion and decision-making when the matter arises 
  • the committee proceeds if a quorum remains 

This process protects both the association and the individual and is a normal part of good governance. 

Why this matters 

P&C committee members are required by law to act in the best interests of the association. When personal interests overlap with committee decisions, clear and consistent disclosure helps to: 

Many people refer to this as a conflict of interest. The Act uses the term material personal interest, which is what we use here. 

What is a material personal interest? 

A material personal interest exists where a committee member has a private interest that could influence, or be seen to influence, their decision-making. 

This can include: 

  • financial interests 
  • employment or business relationships 
  • close personal or family relationships 
  • any situation where a personal benefit could arise 

It does not usually include interests shared by all or most members of the association, such as being a parent at the school. 

When disclosure is required 

A committee member must disclose a material personal interest: 

  • as soon as they become aware of the interest 
  • at the committee meeting where the matter is considered 
  • at the next general meeting of the association 

The disclosure must be clearly recorded in the meeting minutes. 

Early disclosure helps keep the process calm, routine and transparent. 

EXAMPLE wording to record disclosure in the minutes:  

Disclosure of material personal interest: 
Alex Morgan declared a material personal interest in agenda item 6 relating to the catering contract, as their partner operates a business under consideration. Alex Morgan was not present for discussion of this item and did not participate in decision-making. 

What happens after disclosure 

Once a material personal interest is disclosed: 

  • the member must not be present while the matter is discussed 
  • the member must not vote on the matter 
  • the committee may continue if a quorum remains 

If a quorum cannot be formed, the matter must be referred to a general meeting of the association. 

Following this process does not reflect poorly on the individual. It demonstrates good governance and protects everyone involved. 

 

What this looks like in practice 

In a well-run P&C, managing material personal interests is straightforward and routine: 

  • interests are declared early 
  • disclosures are minuted clearly 
  • the affected member steps out without fuss 
  • the committee proceeds calmly 

Clear processes make this easier for everyone. 

 

Templates and tools 

These templates support consistent and compliant handling of material personal interests: 

  • Material Personal Interest Declaration Form 
  • Register of Material Personal Interests 

Using templates helps ensure disclosures are handled correctly and recorded consistently. 

Need a hand? 

If you’re unsure whether something needs to be disclosed, or how to manage a disclosure in practice, it’s always better to ask before proceeding. 

ACT Parents can help you work through specific situations and point you to the right tools. 

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Authorised by Veronica Elliott for ACT Parents

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