Conflict of interest standard
1. *Standard abstract
*Personnel are required to act in the best interests of *Western Power in carrying out their direct or
indirect employment or engagement with *Western Power and may not allow any actual, potential or
perceived conflict of interest to affect *Western Power’s business.
The proper management of conflicts of interest will assist to maintain the integrity of operational and
administrative decisions by *Western Power and will support the public’s confidence in *Western
Power.
1.1 Related Policies
This *Standard is made under and supports the *Code of Conduct.
The *COI Procedure is made under and supports this *Standard and sets out the
process for disclosing and managing a conflict of interest (including a *Gift).
1.2 Purpose
This Standard provides guidance on how *Personnel can identify and manage a
conflict of interest so as to:
(i)
serve both the public interest and the interest of *Western Power by ensuring
*Personnel make every decision on its merits without regard to any private
interest, personal attitude or opinion;
(i)
support transparency and scrutiny of decision making;
(ii)
promote individual responsibility for disclosing a conflict of interest; and
(iii)
build a supportive organisational culture within *Western Power that facilitates
disclosure and discussion of conflicts of interest.
1.3 Scope
In accordance with the *Code of Conduct, this *Standard applies to all of Western
Power’s business activities and operations and all:
(i)
employees, officers and directors of *Western Power; and
(ii)
contractors of *Western Power when performing activities on behalf of *Western
Power.
1.4 Outcomes
This *Standard provides:
(i)
assistance to *Personnel in understanding:
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(ii)
(a)
what a conflict of interest is and the circumstances in which a conflict of
interest may arise;
(b)
how to identify and manage a conflict of interest;
(c)
the legal requirements in relation to a conflict of interest;
(d)
the consequences of failing to disclose a conflict of interest in compliance
with this *Standard; and
guidance on specific conflict risk areas that may affect *Western Power’s
operations.
1.5 Principles
The fundamental principles of this *Standard are:
(iv)
*Personnel must disclose a conflict of interest and follow the process set out in
the *COI Procedure;
(v)
a conflict of interest must be managed transparently and effectively; and
(vi)
the effective management of a conflict of interest depends on the joint
participation of all *Personnel.
1.6 Responsibilities
The respective responsibilities for managing a conflict of interest effectively within
*Western Power are as follows.
All *Personnel
All *Personnel are responsible for:
(i)
avoiding a conflict of interest where possible and managing those which cannot
be avoided;
(ii)
assessing their personal interests to identify whether those interests conflict,
have the potential to conflict or may be perceived as conflicting with their duties
to *Western Power;
(iii)
formally disclosing in accordance with this *Standard and the *COI Procedure a
conflict of interest that arises;
(iv)
adhering to all conflict of interest management strategies applying to them;
(v)
raising concerns about any potential conflict of interest that may affect other
*Personnel – this may be done either by direct discussion with the affected
*Personnel, with a Head of Function or the Corporate Compliance Manager; and
(vi)
complying with all other requirements of this *Standard and the *COI Procedure.
Heads of Function
In addition to the responsibilities applying to all *Personnel, Heads of Function are also
responsible for ensuring that the *Personnel they supervise comply with this *Standard
and the * COI Procedure. In particular, a Head of Function must:
(i)
be aware of the conflict risks inherent in the work performed in their function;
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(ii)
make *Personnel aware of this *Standard and the *COI Procedure;
(iii)
advise Executive Managers of conflicts of interest reported to them;
(iv)
advise *Personnel about managing and documenting a conflict of interest in
accordance with this *Standard and the *COI Procedure and assist *Personnel in
preparing management strategies;
(v)
make enquires and regularly inform themselves of all conflict of interest
disclosures within their function; and
(vi)
monitor the work of *Personnel to ensure conflict of interest management
strategies are adhered to.
A Head of Function may delegate the performance of their responsibilities under this
*Standard that are specifically permitted to be delegated. To avoid doubt a Head of
Function may not delegate the final approval or rejection of a management strategy for
a conflict of interest declared in accordance with the *COI Procedure.
Where a Head of Function’s personal interest gives rise to a conflict of interest the
Executive Manager of the Head of Function must perform the duties of the Head of
Function under this *Standard with respect to that conflict of interest.
Executive Manager
In addition to the responsibilities applying to all *Personnel, Executive Managers are
also responsible for making enquiries and regularly informing themselves of all conflict
of interest disclosures within their Business Unit and must be reasonably satisfied that
they are being managed appropriately.
Where an Executive Manager’s personal interest gives rise to a conflict of interest the
Chief Executive Officer must perform the duties of the Head of Function under this
*Standard with respect to that conflict of interest.
Directors
Directors of *Western Power are required by law 1 to make full disclosure to the Board
of any material personal interest or conflicting duty by providing full details of the nature
and extent of that interest or duty. The disclosure must be recorded in the Board
minutes. 2
Directors who have a material personal interest in a matter must not be present during
any consideration of, or vote on, the matter. This is subject to the power of the Board to
determine that the director is not disqualified from considering or voting on the matter.
If the director with a material personal interest or conflicting duty is the Chief Executive
Officer, he or she should take care to ensure that full disclosure is made, and the
independent directors should also take care in forming an affirmative conclusion on the
Chief Executive Officer’s ability to participate and vote.
1
See divisions 5 and 6 of schedule 2 of the Electricity Corporations Act.
2
Declarations of conflicts of interest will be a standing agenda item for all Board and Board committee meetings.
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Directors must also provide the General Counsel with details of all directorships held,
together with details of shares owned (directly and indirectly) in companies that are
either major suppliers or customers of *Western Power.
Directors must also manage all *Gifts in accordance with this *Standard.
*Western Power
*Western Power is responsible for:
(i)
establishing a system for managing a conflict of interest, including clear
procedures that *Personnel should follow;
(ii)
providing access to documents and ensuring that all *Personnel are aware of
*Western Power’s requirements with respect to declaring and managing a conflict
of interest and establishing guidelines explaining which interests must be
declared;
(iii)
communicating this *Standard to *Personnel and providing them with appropriate
training to enable them to properly identify and manage a conflict of interest;
(iv)
providing *Personnel with an assurance that *Western Power will treat a declared
conflict of interest confidentially and according to its privacy policy; and
(v)
enforcing this *Standard and reviewing it regularly to ensure that the system in
place for managing a conflict of interest is operating effectively.
2. Conflicts of interest
2.1 Defining a conflict of interest
What is a conflict of interest?
A conflict of interest exists wherever a *Personnel’s circumstances impact or may
reasonably be perceived as impacting that *Personnel’s ability to act in the best
interests of *Western Power during performance of the *Personnel’s duties for
*Western Power.
A conflict of interest can arise in many situations and may be:
(i)
actual – namely, a *Personnel is presently in a position to be influenced by his or
her personal interests when doing his or her job;
(ii)
perceived – namely, a *Personnel is in a position to appear to a third party to be
influenced by his or her personal interests when doing his or her job; or
(iii)
potential – namely, a *Personnel is in a position where he or she may in the
future be influenced by his or her personal interests when doing his or her job.
Types of personal interest
Personal interests that may give rise to a conflict of interest can be financial, nonfinancial, direct or indirect.
(i)
Financial – financial and economic interests (e.g. debts, shareholdings and
assets).
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(ii)
Non-financial – receipt of any other benefits such as preferential treatment,
privileged access, favours or other advantages.
(iii)
Direct – the benefit flows directly to the *Personnel.
(iv)
Indirect – the benefit flows to another person with who the *Personnel has a
significant relationship i.e. spouse, child, friend, family member.
Examples of personal interest are: private business interests, relationships with family
members or persons living in the same household, secondary employment and future
employment prospects or plans, affiliations with organisations, clubs or associations
(e.g. political, sporting, trade union or professional organisations), obligations to
community, family or religious groups, competition with another person or group,
significant relationships with client’s contractors, service providers, or other *Personnel.
Common conflict of interest situations
Some examples of conflicts of interest situations that commonly arise are:
(i)
recruitment – *Personnel hiring or proposing to hire on behalf of *Western Power
a person to whom he or she is related or has a close personal relationship or
friendship;
(ii)
engaging contractors - *Personnel engaging or proposing to engage a contractor
or consultant on behalf of *Western Power, where he or she (or a close family
member) has a direct or indirect personal relationship, affiliation or association
with, or financial interest in, the contractor’s or consultant’s business;
(iii)
decision making - *Personnel making a decision or voting as a member of a
committee, where he or she (or a close family member) has a direct or indirect
personal relationship, affiliation or association with, or financial interest in, the
subject matter under consideration;
(iv)
tender evaluations – *Personnel reviewing tender submissions on behalf of
*Western Power where he or she (or a close family member) has a direct or
indirect personal relationship, affiliation or association with, or financial interest
in, one or more of the tendering parties;
(v)
procurement – a *Personnel ordering goods or services on behalf of *Western
Power from a supplier with whom he or she (or a close family member) has a
direct or indirect personal relationship, affiliation, or association or in whose
business he or she (or a close family member) has a direct or indirect financial
interest;
(vi)
representation – a *Personnel representing *Western Power, where *Western
Power’s rights and/or position comes into conflict, or is inconsistent, with his or
her personal rights and/or position; or
(vii) sponsorships – a *Personnel arranging or proposing to arrange sponsorship on
behalf of *Western Power for an organisation, club or association with which he
or she (or a close family member) has an affiliation or association, or in which he
or she (or a close family member) has a financial interest.
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2.2 Identifying conflicts of interest
How can *Personnel identify a conflict of interest?
A conflict of interest is not always clear to those who are affected by it. *Personnel
should clarify with their Formal Leader any situation that they think might constitute an
actual, perceived or potential conflict of interest, immediately upon becoming aware of
it. If there is any uncertainty as to whether a situation is a conflict of interest the
*Personnel must declare and record the situation as a conflict of interest in accordance
with the *COI Procedure. *Personnel should consult with the Corporate Compliance
Manager if there is any uncertainty.
The situation and surrounding circumstances should be carefully considered by the
*Personnel, their Formal Leader to determine if a conflict of interest exists.
When assessing whether a conflict of interest exists the “6 Ps” should be considered:
(i)
Personal – does the *Personnel have a personal, private or financial interest,
relationship or association that may conflict, or be perceived to conflict with his or
her duties to *Western Power?
(ii)
Potential – could there be benefits for the *Personnel, or anyone that he or she
is associated, now or in the future, with that could cast doubt on the *Personnel’s
objectivity? Benefits include financial, non-financial, direct and indirect benefits.
(iii)
Perception – how will the *Personnel’s involvement in a decision/action be
viewed by others? Will the reputation of the *Personnel or a relative, friend or
associate be enhanced or damaged by the proposed decision or action? What
would other’s think or say about the *Personnel’s involvement?
(iv)
Proportionality – does the *Personnel’s involvement in the decision appear fair
and reasonable in all the circumstances?
(v)
Presence of mind – what are the consequences if the *Personnel ignores the
conflict of interest? What if the *Personnel’s involvement is questioned publicly?
(vi)
Promises – has the *Personnel made any promises or commitments in relation
to the matter? Does the *Personnel stand to gain or lose from the proposed
action?
2.3 Declaring a conflict of interest & record keeping
*Personnel must disclose every actual, perceived or potential conflict of interest
(including *Gifts) that arise in any matter in which they are, or are expected to be,
involved as part of their duties in accordance with the *COI Procedure.
Formal conflict of interest disclosures are recorded in a register maintained in
accordance with the *COI Procedure which at a minimum include details of the
*Personnel concerned, the matter under consideration, the *Personnel’s personal
interests that have the potential to impact upon their ability to carry out their duties, and
the decision regarding how best to manage the disclosed conflict.
In addition, to the disclosure of a conflict of interest, Area Managers, Heads of Function
and Executive Managers are also required to provide a yearly declaration (in the form
set out in the *COI Procedure) that they are aware of the obligation to disclose conflicts
of interest, and are not aware of any conflicts of interest affecting them (or provide full
disclosure of any such conflicts of interest).
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In the case of *Western Power’s Board, its committees and the executive committee,
every meeting should include an opportunity for conflicts of interest to be declared and
for matters to be considered at that meeting.
2.4 Managing conflicts of interest
Strategies to manage the conflict
*Personnel should consult with their formal leader as to how a conflict of interest
affecting them will be managed. They should have no further involvement in the matter
until a strategy for managing the conflict of interest has been agreed in accordance
with the *COI Procedure, or *Western Power otherwise gives permission for the
*Personnel to recommence participation.
*Personnel and formal leaders should consider the “6 Rs” when determining how to
manage a conflict of interest:
(i)
Reporting disclosure of the conflict of interest in a register:
As a stand-alone strategy, reporting and recording the disclosure is suitable for
very low-risk and potential conflicts of interest, where the conflict can be
effectively managed with appropriate supervision. This option will not, on its own,
be suitable for more significant or higher risk conflicts, where continued
participation by the *Personnel would create a perception that his or her private
interests may affect the performance of their duties to *Western Power.
(ii)
Restricting the *Personnel from parts of an activity or process:
Using this strategy, a conflict of interest may be managed by preventing the
*Personnel from taking part in a discussion about, or voting on, particular matters
and/or restricting the *Personnel from accessing information relating to the matter
giving rise to the conflict of interest. This strategy is most suitable where the
*Personnel’s duties are easily separated and the conflict of interest is not likely to
arise frequently. A different strategy may need to be adopted if the conflict of
interest occurs frequently, or if restricting the *Personnel’s involvement on a
particular matter makes performance of his or her other duties unworkable.
(iii)
Recruiting an independent third party to participate in the matter:
Where it is not practical to restrict a *Personnel’s involvement in a matter, an
independent third party or parties may need to be engaged to participate in,
oversee, or review the integrity of the decision making process (e.g. a probity
auditor in a tender). If participation of a third party is not appropriate, or if no
suitable third party is available, a different strategy may need to be adopted. This
strategy will not be appropriate if the conflict of interest is of an ongoing nature.
(iv)
Removing the *Personnel from involvement in the matter altogether:
Removing the *Personnel from all duties related to the matter giving rise to the
conflict of interest may be necessary when the conflict of interest is ongoing and
restriction or recruitment strategies are not feasible or appropriate.
This will not be necessary if the *Personnel is prepared to relinquish the relevant
personal interest rather than changing his or her work responsibilities or
environment.
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(v)
Relinquishing the *Personnel’s personal interest:
*Personnel should relinquish his or her personal interest where that interest is
outweighed by the *Personnel’s commitment to his or her duty to *Western
Power. The *Personnel may also wish to relinquish his or her personal interest
where the conflict of interest would otherwise need to be managed by changing
his or her work responsibilities and environment.
This strategy will not usually be appropriate for situations where the conflict of
interest, and its potential or perceived effects, are of low risk or significance,
which can often be managed by implementing the other strategies discussed
above.
(vi)
Resignation of *Personnel:
As a last resort, resignation may be an option if the conflict of interest cannot be
resolved in any other way, particularly where the conflicting personal interest
cannot or will not be relinquished and the conflict of interest’s potential or
perceived effects, are of high risk and significance.
Implementing a management strategy
After a management strategy has been set, the *Personnel and his or her formal leader
must prepare a written record of the chosen strategy and the discussions that took
place in the form set out in the *COI Procedure.
Details of the management strategy will be recorded in the register of conflict of interest
disclosures maintained in accordance with the *COI Procedure. This enables *Western
Power to demonstrate that the conflict of interest has been appropriately identified and
managed.
The *Personnel and their formal leader should then implement the agreed strategy.
In some cases it may not be practical to record a conflict of interest and prepare a
written management strategy prior to taking action to manage it. This may occur, for
example, if without prior warning, a matter in respect of which *Personnel has a conflict
of interest is raised during a meeting at which the *Personnel is present. In this
situation, the *Personnel should verbally disclose the conflict of interest, make a note of
the disclosure and ensure that the disclosure is recorded in any minutes of the
meeting. The *Personnel should then leave the meeting while the matter is being
discussed and take steps to formally record the conflict of interest as soon as practical.
Monitoring the management strategy
*Personnel, their Formal Leader and their Head of Function (or the Head of Function’s
delegate) must monitor the management strategy on an ongoing basis until the conflict
of interest is resolved, to ensure that it is being managed effectively. Changes to the
strategy should be implemented as necessary to properly manage the conflict.
Reassessment of, and changes to, management strategies should be formally
recorded and details sent to the relevant Executive Manager and the Corporate
Compliance Manager.
2.5 Procedures & guidance
The procedure for declaring *Conflict of Interest is set out in the *COI Procedure.
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3. *Gifts
3.1 What is a *Gift?
In this *Standard a *Gift includes any item of value, entertainment or hospitality (such
as travel, meals, accommodation), and other personal benefits (such as preferential
treatment, services, privileged access, information, favours or other advantages).
3.2 Why does the giving and receiving of a *Gift create a risk to
*Western Power?
The acceptance or giving of a *Gift by *Personnel may create a potential, perceived or
actual conflict of interest through introducing a personal interest that did not previously
exist. This personal interest may then impact (or been seen to impact) the recipient’s
ability to act in the best interests of *Western Power.
Because *Western Power is a State owned entity the community must be satisfied that
*Western Power will carry out its functions impartially and ensure its *Personnel are not
influenced by *Gifts.
3.3 *Western Power’s position on *Gifts
*Personnel must not seek, offer or accept any *Gift arising out of the *Personnel’s
direct or indirect employment with *Western Power unless:
(i)
the giving or receiving of the *Gift complies with the *Gift Rules in section 3.4;
and
(ii)
if the *Gift is a *Reportable Gift, approval has been obtained in accordance with
the *COI Procedure before the *Gift is accepted.
When is approval required?
A *Gift that complies with the *Gift Rules and is not a *Reportable Gift does not require
approval under the *COI Procedure.
All offers of *Reportable Gifts must be approved in accordance with the *COI
Procedure prior to acceptance or retention.
Bribery is illegal and must be reported
All offers of bribes must be reported in accordance with the *COI Procedure. A bribe is
where an offer, payment, promise or *Gift is intended to induce the recipient to misuse
his or her position in order for the offer or to obtain a personal gain or business
advantage.
3.4 *Gift Rules
*Gifts must not:
(i)
be beyond that which is considered normal and legitimate business practice;
(ii)
be intended, or be perceived to be intended to be an inducement, incentive or
reward for the provision of a business advantage or preferential treatment;
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(iii)
place, or be seen to place, the recipient under an obligation that directly or
indirectly influences the recipient in the performance of his or her duties;
(iv)
be in the form of cash or a cash equivalent (such as gift vouchers or shares);
(v)
be given or received at a frequency that creates an appearance of impropriety;
(vi)
be such as to bring *Western Power into disrepute or cause *Western Power
embarrassment; or
(vii) be accepted if the *Gift is a *Reportable Gift and the recipient has direct
discretionary authority in relation to the gift giver (such as purchasing discretion).
3.5 Declining a *Gift
If a *Gift does not comply with the *Gift Rules the *Personnel must decline the offer.
If a *Gift that does not comply with the *Gift Rules and has been delivered or received,
it must be surrendered to a *PID Officer. The Chief Executive Officer (or the Chief
Executive Officer’s delegate) will make the final decision as to its disposal.
3.6 *Reportable Gifts - Assessing the value of a *Gift
A *Gift is a *Reportable Gift if any of the following apply:
(i)
its market value exceeds $100 ($200 if hospitality);
(ii)
its purchase value exceeds $100 ($200 if hospitality);
(iii)
if the value of a *Gift is uncertain, but its value potentially exceeds $100 ($200 if
hospitality); or
(iv)
the recipient has received other *Gifts from the giver within the previous
12 months which together have a value of greater than $100 ($200 if hospitality).
3.7 Loyalty programs
Membership of company loyalty programs including airline frequent flyer programs is a
private matter for *Personnel and thus will accrue to the *Personnel as a private
entitlement, provided that:
(i)
*Personnel comply with any relevant procurement or travel procedures issued by
*Western Power; and
(ii)
*Western Power does not bear any additional cost such as a loyalty program
joining fee.
3.8 Procedures & guidance
How to report a *Gift and further guidance on the giving and receiving of a *Gift is set
out in the *COI Procedure.
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4. Other specific risk areas
There are certain types of activity which may give rise to a conflict of interest. These
activities and similar circumstances should be avoided so far as possible by *Personnel
and must be reported immediately should they occur.
4.1 Outside employment activities
*Personnel may not engage in outside employment or business activities, or hold any
position (whether paid or unpaid) in any outside business enterprise that will prevent or
interfere with the full discharge of their responsibilities and obligations to *Western
Power, without first obtaining the written approval of their Head of Function in
accordance with the *COI Procedure.
*Personnel must also ensure that any personal or professional activities, or public
comment made as private citizens, are clearly identified as such and cannot be taken
as a comment on behalf of *Western Power.
4.2 Competition and shares
*Personnel must not compete, engage in business with, or have an interest in any
other business that is in competition with *Western Power, without first obtaining the
written approval of their Head of Function.
*Personnel must notify *Western Power (in accordance with the *COI Procedure) if
their spouse or another family member engages in business with, or has an interest in
any entity that does business with, or is a competitor of, *Western Power.
*Personnel must not have direct ownership of public shares, or private interests, in
companies or organisations that are either in direct competition with, provide goods
and/or services to, or are customers of, *Western Power, where that *Personnel, by
virtue of his or her position has, or may be seen to have, influence over the conduct of
*Western Power’s business relationship with the relevant organisation. Provided this
restriction is not breached *Personnel are permitted to hold shares listed on a
recognised stock exchange.
4.3 Use of information
*Western Power *Personnel cannot use information gained in the performance of their
roles to obtain a benefit for themselves or someone else (such as a company in which
they have an interest) either directly or indirectly, or to cause detriment to *Western
Power. This includes buying or selling shares in a listed public company as a result of
using non-public information obtained because of dealings by *Western Power with that
company. This obligation also has statutory force (section 30 of the Electricity
Corporations Act).
4.4 Business opportunities
*Western Power *Personnel (or their spouses and family members) should not take
advantage of any business opportunity which was learned of, or acquired, as a result of
the *Personnel’s relationship with *Western Power.
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4.5 Inventions and discoveries by *Personnel
*Personnel inventions, discoveries and the like developed as part of a Personnel’s
employment or engagement with *Western Power, or developed using *Western
Power’s assets, belong to *Western Power and cannot be used except for the benefit
of *Western Power or in connection with its business.
5. Legal requirements
The Criminal Code (WA) makes it a criminal offence for *Personnel to engage in
bribery and corruption.
In addition, the Electricity Corporations Act imposes a number of obligations on
employees and directors of *Western Power as follows.
Employees
Section 30 of the Electricity Corporations Act prohibits all *Western Power *Personnel
from making improper use of information obtained during their employment to gain a
benefit for themselves or anyone else, or to cause detriment to *Western Power.
Directors & Executive Management
Schedule 2 of the Electricity Corporations Act imposes the following duties on directors
and executive management:
(i)
directors, the Chief Executive Officer and executive management must at all
times act honestly in the performance of the functions of their office (clause 2);
(ii)
directors, the Chief Executive Officer and executive management (including
persons formerly holding one of those positions) must not make improper use of
information acquired by virtue of their position to gain, directly or indirectly, an
advantage for themselves or for any other person or to cause detriment to
*Western Power (clause 4);
(iii)
directors, the Chief Executive Officer and executive management must not make
improper use of their position to gain, directly or indirectly, an advantage for
themselves or for any other person or to cause detriment to *Western Power
(clause 5);
(iv)
directors must disclose all material personal interests in any matter involving
*Western Power to the Board, as soon as possible after becoming aware of it
(clause 12); and
(v)
directors who have a material personal interest in a matter being considered by
the Board must not be present while the matter is being considered at a meeting,
or vote on it (unless the Board passes a resolution specifying that the director is
not disqualified from doing so) (clause 13).
Directors also owe fiduciary duties, and duties to act with loyalty and good faith under
legislation (see the Electricity Corporations Act, as well as the Statutory Corporations
(Liability of Directors) Act and general law). This includes the duty not to assume a role
that would be inconsistent with a proper, free and independent discharge of a director’s
duties. For example, a director’s duties to *Western Power may not be brought into
conflict with:
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(i)
a director’s personal interests, such as a shareholding in another company, or the
receipt of a substantial benefit by virtue of a proposed transaction; or
(ii)
any duties owed by the directors to others, such as being a director of another
company.
In addition, directors must exploit commercial opportunities for the benefit of *Western
Power only, and not for collateral purposes.
For further information on the duties of directors, please refer to *Western Power’s
Outline of duties and obligations of directors & executive officers (DM#3357312).
6. Consequences of breaching this *Standard
*Personnel
If *Personnel breach this *Standard, he or she may face disciplinary action for
breaching the *Code of Conduct. In extreme cases, the employee may also be found
guilty of bribery, corruption or fraud, which may have both criminal and civil
repercussions.
A breach of section 30 of the Electricity Corporations Act may also result in the
offending *Personnel being liable to a maximum penalty of $20,000, 5 years
imprisonment, and/or being ordered to pay compensation or give up profits made as a
result of the breach.
Directors
Directors who breach a duty owed to *Western Power may be subject to the remedies
and penalties set out in the Electricity Corporations Act, which include:
(i)
for breach of the duty to disclose material personal interests to the Board: penalty
of $5,000;
(ii)
for breach of the other duties referred to above: conviction for an offence with a
maximum penalty of $20,000 and/or 5 years imprisonment;
(iii)
an order to compensate *Western Power for loss and damage suffered; or
(iv)
an order to account to *Western Power for profits made as a result of a breach.
In addition to these statutory remedies, general law remedies, such as injunctions,
common law damages and equitable compensation are also available.
*Western Power
A breach of the requirements of this *Standard may negatively impact on *Western
Power’s credibility and reputation, and may expose *Western Power to legal claims by
third parties.
7. Looking after each other
*Western Power expects all of its *Personnel to uphold the highest standards of probity
and integrity in the conduct of its business. *Personnel should, as a matter of course,
be reminded by one another to declare conflicts of interest prior to participating in a
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meeting, investigation, recruitment panel, performance management consensus,
tender evaluation, inspection, audit or similar activity.
Occasionally, *Personnel may not realise that there is an actual or potential conflict of
interest that affects his or her position. If you become aware that a colleague is affected
by, but not aware of, a conflict of interest, you should bring it to his or her attention. If
he or she refuses to act on your advice, you should bring the matter to the attention of
the relevant Head of Function or the Corporate Compliance Manager. Depending on
the circumstances, *Personnel may choose to make a disclosure under *Western
Power’s Public Interest Disclosure standard (DM#3442810).
8. Accountabilities
Content owner:
Accountable for:
(i)
implementing the *Standard
(ii)
preparing, issuing and maintaining any required
supporting documentation
(iii)
ensuring that people affected by the *Standard and
its related documents are aware of their
responsibilities
(iv)
ongoing education (as necessary)
(v)
monitoring compliance with the requirements of the
*Standard and its related documents
(vi)
ensuring that appropriate remedial actions are taken
if there are compliance breaches
(vii) monitoring the continuing relevance of the *Standard
and the currency of its contents.
General Counsel:
Accountable for publishing the approved version of the
*Standard in *Western Power’s corporate policies register.
9. Dictionary
Words in the first column of the following table are defined terms and have the
corresponding meaning shown in the second column of the table.
Defined terms are identified in this *Standard by the insertion of an asterisk (“*”) before
the defined term.
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Defined term
Meaning
*Code of Conduct
*Western Power’s Code of Conduct policy (DM#3575156).
*COI Procedure
the conflict of interest procedure (DM#12335797).
*Gift Rules
the rules set out under the heading “Gift Rules” in section 3.4 of this *Standard.
*Gift
is a gift as described in section 3.1 of this standard.
*Personnel
employees, officers, directors of *Western Power and contractors of *Western
Power when performing activities on behalf of *Western Power.
*PID Officer
an officer appointed under the Public Interest Disclosure Act 2003.
*Reportable Gift
is a *Gift as described under the heading “Reportable gifts” in section 3.6 of this
*Standard.
*Standard
this conflict of interest management standard issued under and supporting the
*Code of Conduct.
*Western Power
Electricity Networks Corporation trading as Western Power.
10. Further information
The General Counsel and Corporate Compliance Manager are available to assist
*Personnel who require further advice about possible conflicts of interest. Requests for
advice will be handled confidentially.
11. Content owner
General Counsel.
12. Related documents
Description
DM reference
Code of conduct
DM#3575156
Guide to directors and executive officer’s statutory duties and responsibilities
DM#3357312
Conflict of interest disclosure form
DM#3396080
Conflict of interest FAQ
DM#3403247
Public interest disclosure standard
DM#3442810
Section 135(4) authority to execute documents
DM#2863021
Section 135(4) signing authority guidelines
DM#12287660
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Description
DM reference
Western Power’s outline of duties and obligations of directors & executive
officers
DM#3357312
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13. Approval history
Version
Approved by
Date
Resolution no.
1.
P&PC
25/10/2007
PPC/23/07
2.
P&PC
15/06/2010
#034/2010/PPC
3.
General Counsel
27/03/2014
#070/2014/BD
4.
General Counsel
06/01/2015
Date of approval:
Notes
Under delegation of Board. Approval
relates specifically to the removal of
outdated corporate values.
06/01/2015
………………………………………………………………...………………………………..
Sam Barbaro
General Counsel
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