STUDENT DEFENSE INITIATIVE CONFLICT OF INTEREST POLICY

ARTICLE I: PURPOSE

It is important for Directors of the Student Defense Initiative (Corporation) to be aware that both real and apparent conflicts of interest or dualities of interest sometimes occur in the course of conducting the affairs of the corporation and that the appearance of conflict can be troublesome even if there is, in fact, no conflict whatsoever. The purpose of the conflict of interest policy is to protect the corporation’s tax-exempt interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the corporation or might result in a possible excess benefit transaction.  The policy is intended to supplement but not replace any relevant state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations.

ARTICLE II: CODE OF CONDUCT

Although we are not sanctioned by or formally affiliated with the California Institute of Technology, we believe that the Honor Code we were taught to uphold is applicable to this organization. No participant in the Student Defense Initiative shall take unfair advantage of another participant in the Student Defense Initiative or anyone affiliated with the Caltech community.

The Honor Code shall be the fundamental principle of conduct for all Directors of the Corporation. It shall apply to all scholastic activities and also to relations with other members of the Caltech community. The Honor Code will be interpreted as understood by members of the Caltech community and in accordance with precedent established by the ASCIT Board of Control.

ARTICLE III: PROCEDURES

No member of the Board of Directors shall participate in any discussion or vote on any matter in which he or she or a member of his or her immediate family has potential conflict of interest due to having material economic involvement regarding the matter being discussed. When such a situation presents itself, the Director must announce his or her potential conflict, disqualify himself or herself, and be excused from the meeting until discussion is over on the matter involved. The President of the meeting is expected to make inquiry if such conflict appears to exist and the board member has not made it known.

If a Director notices a potential conflict of interest after discussion and/or voting on the matter has occurred, he or she shall notify the other Directors. A quorum of disinterested Directors shall discuss the situation. The goal of this discussion is to resolve the potential conflict of interest and to nullify its effects as best as possible. The effects of a conflict of interest may go beyond the outcome of votes by the Board of Directors, as discussion prior to a vote can be more influential than the vote itself. They shall vote on appropriate action to be taken. They may agree that no further action is required.

In the event all Directors have the same potential conflict of interest, a note of such shall be made in the official meeting minutes.