Conflict Of Interest Policy

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The purpose of this Conflict of Interest Policy is to protect this tax-exempt organization's interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of a Peninsula Art Academy (“PAA”) director, officer or employee. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.
PAA encourages the active involvement of its Directors, Officers, and Employees in the community. In order to deal openly and fairly with actual and potential conflicts of interest that may arise as a consequence of this involvement, PAA adopts the following Conflict of Interest Policy.

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Procedures for Addressing the Conflict of Interst 1. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting, during the discussion of, and the vote on, the transaction involving the possible conflict of interest. 2. The President of the Board or Head of the committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arraignment. After exercising due diligence, the governing board or committee shall determine whether PAA can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of…show more content…
If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.

Article IV. Violations of the PAA Conflict of Interest Policy 1. If the board or committee has reasonable cause to believe that a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. 2. If, after hearing the response of the member and making such further investigation as may be warranted in the circumstances, the board or committee determines that the member has in fact failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective actions. This may include
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