| Avoiding Conflicts of Interest
1. Network board members and executive staff make annual written declarations of interests, and update these as necessary on a Register of Interests held by their respective Chief Executives.
2. Registered Interests are defined as: Any contractual or financial relationship (including directorship, consultancy, board membership or other position of authority) with an outside business or organisation.
3. Each Chief Executive is responsible for: a) monitoring case papers and other documents for potential conflicts of interest; b) keeping relevant papers and information from Board Members or staff with relevant interests.
4. Each Chief Executive decides on the necessity to formally record any conflicts of interests at meetings.
5. Board Members and staff are excluded from any discussions and decision relating to their declared interests. All such exclusions are minuted. NB: These five key procedures are operated against the broader background of detailed provisions in the Companies Acts (for Local Enterprise Companies [LECs]); in founding legislation and subsequent guidance to HIE issued by the Secretary of State for Scotland; and additional procedures put in place by HIE and LECs to cover specific situations.
Ensuring Openness
1. The Register of Interests is kept available to the public.
2. LEC or HIE decisions relating to financial transactions in which their Board Members have Registered Interests are noted with the LEC or HIE annual accounts and published in the respective annual reports.
3. Each LEC operates a policy of keeping current, publicly available lists of financial assistance approved to third parties under its development programmes, including Finance for Business, Training, Community Action etc.
4. The Chief Executive can decide to temporarily exclude individual financial assistance cases from the public list to protect commercial confidentiality (on rare occasions where immediate publicity could threaten the competitive position of the recipient of assistance).
HIE Network - Appointability through Openness
As a minimum practice the Company shall implement the policy of Appointability Through Openness in consultation with HIE.
Appointability through Openness - Policy
HIE Network Local Enterprise Company Directors are appointed on the basis of:
A publicly available, written appointments process; Production of clear job descriptions and people specifications for each post;
Advertising and consulting locally to establish a field of candidates; Sifting of candidate Directors - on the basis of merit, suitable skills and experience - by a nominations panel containing independent local representation from outside the company.
LEC Director Appointements - Procedures
1. Use of job descriptions and person specifications for board Directors. This provides: a) a clear focus on objective criteria, including experience, skills and merit, in selection of HIE Network LEC Directors; and b) maintenance of a balanced board to reflect the nature of the LEC area, economy and community.
2. Advertising and consulting to identify a field of candidates. Advertising and consultation with interested organisations is undertaken, to encourage nominations and self-nominations of candidates for Directorship from within the LEC area. This not only promotes interest in, and access to, the appointments process but also helps to widen the known field of available skills and interest in serving local enterprise development. Advertisements are placed in local media, and standing invitations to apply are also included in LEC Annual Reports. Relevant business, voluntary and other groups may also be consulted or canvassed for potential candidates.
3. Directorship candidates sifted by a nominations panel, with independent representation.
This complements the use of Job and People Specifications, aiding clear perceptions of objectivity in matching candidates to selection criteria of merit, skills and experience.
The nominations panel of the board also includes independent local representation from outside the company.
The panel sifts and short-lists candidates against relevant Director posts as they become vacant. (One-third of LEC Directors stand down, or stand for re-appointment, annually). The panel's recommendations are given in selection of Directors at the company's general meeting. |