< Model Code of Conduct

The Model Code of Conduct for Parish and Town Councils

Interests

Personal interests
8 (1) You have a personal interest in any business of your authority where either:
(a) it relates to or is likely to affect:
(i) any body of which you are a member or in a position of general control or management and to which you are appointed or nominated by your authority;
(ii) any body:
(aa) exercising functions of a public nature;
(bb) directed to charitable purposes; or
(cc) one of whose principal purposes includes the influence of public opinion or policy (including any political party or trade union), of which you are a member or in a position of general control or management;
(iii) any employment or business carried on by you;
(iv) any person or body who employs or has appointed you;
(v) any person or body, other than a relevant authority, who has made a payment to you in respect of your election or any expenses incurred by you in carrying out your duties;
(vi) any person or body who has a place of business or land in your authority’s area, and in whom you have a beneficial interest in a class of securities of that person or body that exceeds the nominal value of £25,000 or one hundredth of the total issued share capital (whichever is the lower);
(vii) any contract for goods, services or works made between your authority and you or a firm in which you are a partner, a company of which you are a remunerated director, or a person or body of the description specified in paragraph (vi);
(viii) the interests of any person from whom you have received a gift or hospitality with an estimated value of at least £25;
(ix) any land in your authority’s area in which you have a beneficial interest;
(x) any land where the landlord is your authority and you are, or a firm in which you are a partner, a company of which you are a remunerated director, or a person or body of the description specified in paragraph (vi) is, the tenant;
(xi) any land in the authority’s area for which you have a licence (alone or jointly with others) to occupy for 28 days or longer; or
(b) a decision in relation to that business might reasonably be regarded as affecting your well-being or financial position or the well-being or financial position of a relevant person to a greater extent than the majority of:
(i) (in the case of authorities with electoral divisions or wards) other council tax payers, ratepayers or inhabitants of the electoral division or ward, as the case may be, affected by the decision; or
(ii) (in all other cases) other council tax payers, ratepayers or inhabitants of your authority’s area.
(2) In sub-paragraph (1)(b), a relevant person is:
(a) a member of your family or any person with whom you have a close association; or
(b) any person or body who employs or has appointed such persons, any firm in which they are a partner, or any company of which they are directors;
(c) any person or body in whom such persons have a beneficial interest in a class of securities exceeding the nominal value of £25,000; or
(d) any body of a type described in sub-paragraph (1)(a)(i) or (ii).

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Disclosure of personal interests
9 (1) Subject to sub-paragraphs (2) to (7), where you have a personal interest in any business of your authority and you attend a meeting of your authority at which the business is considered, you must disclose to that meeting the existence and nature of that interest at the commencement of that consideration, or when the interest becomes apparent.
(2) Where you have a personal interest in any business of your authority which relates to or is likely to affect a person described in paragraph 8(1)(a)(i) or 8(1)(a)(ii)(aa), you need only disclose to the meeting the existence and nature of that interest when you address the meeting on that business.
(3) Where you have a personal interest in any business of the authority of the type mentioned in paragraph 8(1)(a)(viii), you need not disclose the nature or existence of that interest to the meeting if the interest was registered more than three years before the date of the meeting.
(4) Sub-paragraph (1) only applies where you are aware or ought reasonably to be aware of the existence of the personal interest.
(5) Where you have a personal interest but, by virtue of paragraph 14, sensitive information relating to it is not registered in your authority’s register of members’ interests, you must indicate to the meeting that you have a personal interest, but need not disclose the sensitive information to the meeting.

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Prejudicial interest generally
10 (1) Subject to sub-paragraph (2), where you have a personal interest in any business of your authority you also have a prejudicial interest in that business where the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice your judgement of the public interest.
(2) You do not have a prejudicial interest in any business of the authority where that business:
(a) does not affect your financial position or the financial position of a person or body described in paragraph 8;
(b) does not relate to the determining of any approval, consent, licence, permission or registration in relation to you or any person or body described in paragraph 8; or
(c) relates to the functions of your authority in respect of:
(i) this sub-paragraph does not apply to your authority;
(ii) this sub-paragraph does not apply to your authority;
(iii) statutory sick pay under Part XI of the Social Security Contributions and Benefits Act 1992, where you are in receipt of, or are entitled to the receipt of, such pay;
(iv) an allowance, payment or indemnity given to members;
(v) any ceremonial honour given to members; and
(vi) setting council tax or a precept under the Local Government Finance Act 1992.
11 Paragraph 11 does not apply to your authority.

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Effect of prejudicial interests on participation
12 (1) Subject to sub-paragraph (2), where you have a prejudicial interest in any business of your authority:
(a) you must withdraw from the room or chamber where a meeting considering the business is being held:
(i) in a case where sub-paragraph (2) applies, immediately after making representations, answering questions or giving evidence;
(ii) in any other case, whenever it becomes apparent that the business is being considered at that meeting;
(iii) unless you have obtained a dispensation from your authority’s standards committee; and
(b) you must not seek improperly to influence a decision about that business.
(2) Where you have a prejudicial interest in any business of your authority, you may attend a meeting but only for the purpose of making representations, answering questions or giving evidence relating to the business, provided that the public are also allowed to attend the meeting for the same purpose, whether under a statutory right or otherwise.

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