Code of conduct

Appendix to the code

Legislation bearing on the role and conduct of elected members

In addition to the requirements of the Local Government Act 2002, elected members are subject to a range of other legislation. This is a summary of the legislation requirements that have some bearing on the duties and conduct of elected members. Copies of these statutes can be found in the council's LOGIS library or in the office of the Democracy Services' manager.

Local Authority (Members' Interests) Act 1968

This act regulates situations where a member's personal interests impinge, or could be seen as impinging on their duties as an elected member.

The act provides that an elected member is disqualified from office if that member is concerned or interested in contracts under which payments made by or on behalf of the council exceed $25,000 in any financial year.

Additionally, elected members are prohibited from participating in any council discussion or voting on any matter in which they have a pecuniary interest, other than an interest in common with the general public. The same rules also apply where the member's spouse contracts with the authority or has a pecuniary interest.

Members may also contact the audit office for guidance as to whether that member has a pecuniary interest, and if so, may seek an exemption to allow that member to participate or vote on a particular issue in which they may have a pecuniary interest. The latter must be done before the discussion or vote. The chief executive must also seek approval from the audit office for contractual payments to members, their spouses or their companies that exceed the $25,000 annual limit.

Failure to observe these requirements could also leave the elected member open to prosecution under the Local Authority (Members' Interests) Act 1968. In the event of a conviction elected members can be ousted from office.

Local Government Official Information and Meetings Act 1987

The Local Government Official Information and Meetings Act 1987 sets out a list of meetings' procedures and requirements. Of particular importance for the roles and conduct of elected members is the fact that the chair has the responsibility to maintain order at meetings, but all elected members should accept a personal responsibility to maintain acceptable standards of address and debate. No elected member should:

create a disturbance or a distraction while another Councillor is speaking
be disrespectful when they refer to each other or other people
use offensive language about the council, other councillors, any employee of the council or any member of the public.

Secret Commissions Act 1910

Under this act it is unlawful for an elected member (or officer) to advise anyone to enter into a contract with a third person and receive a gift or reward from that third person as a result, or to present false receipts to council.

If convicted of any offence under this act a person can be imprisoned for up to two years, or be fined up to $1000, or both. A conviction therefore would trigger the 'ouster' provisions of the Local Government Act 2002 and result in the removal of the member from office.

Crimes Act 1961

Under this Act it is unlawful for an elected member (or officer) to:

accept or solicit for themselves (or anyone else) any gift or reward for acting or not acting in relation to the council's business
use information gained in the course of their duties for their, or another person's, monetary gain or advantage.

These offences are punishable by a term of imprisonment of seven years or more. Elected members convicted of these offences will also be automatically ousted from office.

Securities Act 1978

The Securities Act 1978 essentially places elected members in the same position as company directors whenever council offers stock to the public. Elected members may be personally liable if investment documents such as a prospectus contain untrue statements and may be liable for criminal prosecution if the requirements of the act are not met.