N.Y. Not-for-Profit Corporation Law § 715-a: Conflict of interest policy

§ 715-a. Conflict of interest policy.

(a) Except as provided in paragraph (d) of this section, the board

shall adopt, and oversee the implementation of, and compliance with, a

conflict of interest policy to ensure that its directors, officers and

key persons act in the corporation's best interest and comply with

applicable legal requirements, including but not limited to the

requirements set forth in section seven hundred fifteen of this article.

(b) The conflict of interest policy shall include, at a minimum, the

following provisions:

(1) a definition of the circumstances that constitute a conflict of

interest;

(2) procedures for disclosing a conflict of interest or possible

conflict of interest to the board or to a committee of the board, and

procedures for the board or committee to determine whether a conflict

exists;

(3) a requirement that the person with the conflict of interest not be

present at or participate in board or committee deliberation or vote on

the matter giving rise to such conflict, provided that nothing in this

section shall prohibit the board or a committee from requesting that the

person with the conflict of interest present information as background

or answer questions at a committee or board meeting prior to the

commencement of deliberations or voting relating thereto;

(4) a prohibition against any attempt by the person with the conflict

to influence improperly the deliberation or voting on the matter giving

rise to such conflict;

(5) a requirement that the existence and resolution of the conflict be

documented in the corporation's records, including in the minutes of any

meeting at which the conflict was discussed or voted upon; and

(6) procedures for disclosing, addressing, and documenting related

party transactions in accordance with section seven hundred fifteen of

this article.

(c) The conflict of interest policy shall require that prior to the

initial election of any director, and annually thereafter, such director

shall complete, sign and submit to the secretary of the corporation or a

designated compliance officer a written statement identifying, to the

best of the director's knowledge, any entity of which such director is

an officer, director, trustee, member, owner (either as a sole

proprietor or a partner), or employee and with which the corporation has

a relationship, and any transaction in which the corporation is a

participant and in which the director might have a conflicting interest.

The policy shall require that each director annually resubmit such

written statement. The secretary of the corporation or the designated

compliance officer shall provide a copy of all completed statements to

the chair of the audit committee or, if there is no audit committee, to

the chair of the board.

(d) A corporation that has adopted and possesses a conflict of

interest policy pursuant to federal, state or local laws that is

substantially consistent with the provisions of paragraph (b) of this

section shall be deemed in compliance with provisions of this section.

In addition, any corporation that is a state authority or a local

authority as defined in section two of the public authorities law, and

that has complied substantially with section twenty-eight hundred

twenty-four and subdivision three of section twenty-eight hundred

twenty-five of such law, shall be deemed in compliance with this

section.

(e) Nothing in this section shall be interpreted to require a

corporation to adopt any specific conflict of interest policy not

otherwise required by this section or any other law or rule, or to

supersede or limit any requirement or duty governing conflicts of

interest required by any other law or rule.