- Procedures for addressing the conflict of Interest After exercising due diligence, the governing board or committee shall determine whether the organization can obtain with reasonable effort a more advantageous transaction or arrangement from a person or entity that would not produce a conflict of Interest. The Interested Person shall not be present in the room during the determination.
If an alternative transaction or arrangement is not possible, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the best interests of the organization, for its own benefit, and fair and reasonable. Based on these determinations, the board or committee shall make Its decision on whether to enter into the transaction or arrangement.
- Disciplinary action If the committee has reason to believe an individual has failed to disclose .actual or potential conflicts of interest, it will inform the member and allow him/her to plan the alleged failure to disclose. If the committee still has reason to believe a conflict of interest. exists after the alleged conflict Is explained, it will take corrective action.