Fiduciary Considerations Involving Charitable Property 2010 National Charity Law Symposium

Conflict of Interest – Cont’d

¡A fiduciary cannot personally benefit from his or her duties to the beneficiary

¡To be advised that one is in a conflict of interest is not necessarily an accusation that a fiduciary has done something wrong. A conflict of interest can exist even if no unethical or improper act results.

¡A conflict of interest can create an appearance of impropriety that can undermine confidence in the fiduciary’s ability to act in accordance with his or her duty of loyalty and honesty owed to the beneficiary.

“A conflict of interest may arise, whether or not:

¡(a) financial advantage has been or may have been received;

¡(b) the judgment of the person has actually been affected or impaired by the conflict;

¡(c) the conflict is actual or perceived;

¡(d) there is an intention to obtain a personal benefit, either directly or indirectly;

¡(e) there is any willful wrongdoing.”

¡-- Peel (Regional Municipality) v. Greater Toronto Airports Authority, [1999] O.J. No. 3597 (Ont. Sup. Ct. J.)(QL).