Lower Gardens CID Directors Code of Conduct
1. Definitions and Interpretations.
1.1. "Board" means the board of directors of the LGCID management body, as contemplated in section 66 of the Companies Act.
1.2. "Company" means the Lower Gardens City Improvement District NPC, a non-profit company incorporated in accordance with the Companies Act.
1.3. "Conflict of Interest" means a conflict between the official duties and the private or personal interests of directors, sufficient to influence, or reasonably appear to influence, the objective exercise of their official duties.
1.4. "Director" means a member of the board of the LGCID company, or an alternate director, by whatever name is designated.
1.5. "Private Interest" includes a pecuniary interest involving financial gain or non-pecuniary interests such as personal affiliations that could influence the director’s performance of official duties.
2. Status and Purpose.
2.1. This Code is binding on all directors of the LGCID company.
2.2. Any material breach of this Code must result in disciplinary action.
2.3. The Code is established to govern roles and responsibilities while providing guidelines on legal, management, and ethical standards.
2.4. All members of the board must familiarise themselves with, sign a copy of, and comply with this code of conduct.
3. General Obligations and Use of Funds.
3.1. Directors must ensure that public funds paid to the LGCID are applied only pursuant to the provisions of the company’s business plan.
3.2. Directors must ensure that LGCID resources are employed efficiently, responsibly, and in a manner that gives effect to the procurement principles in section 217 of the Constitution.
3.3. As a general principle, the LGCID company must adopt a competitive tendering process when procuring goods and services.
3.4. Directors are duty bound to ensure that the requirements for public procurement and all relevant laws, regulations, and policies are adhered to.
4. Gifts, Hospitality and Preferential Treatment.
4.1. Directors shall not offer or accept any gifts, hospitality, or benefits that might affect, or could reasonably appear to affect, the recipient’s objectivity.
4.2. Directors may only offer or accept gifts in the ordinary course of the LGCID’s activities if the value, individually or in aggregate, does not exceed R500.00 over a 12-month period.
4.3. If a director obtains prior written approval from the board, they may accept gifts up to a maximum of R2,000.00 over a 12-month period.
4.4. Directors are obliged to record any gifts, rewards, meals, or entertainment above the value of R200.00 in the LGCID’s Gift and Hospitality Register.
5. Confidentiality and Disclosure.
5.1. Directors shall not disclose any information collected or held by the LGCID that is not in the public domain or is confidential and sensitive.
5.2. This obligation regarding non-disclosure remains in effect both during and after their term of office.
5.3. Directors shall not use information acquired in the course of their official duties to further their direct or indirect personal or private financial interests.
5.4. Directors must return documentation obtained during their term to the Chairperson or indicate that such documentation has been disposed of appropriately.
6. Conflict of Interests Protocols.
6.1. Directors are duty bound to act in the interests of the LGCID company and must avoid all conflicts of interest.
6.2. Upon appointment, each director must declare in writing to the Chairperson their private interests which could give rise to a potential conflict.
6.3. Directors must declare in writing any private interests in the subject-matter of a board meeting before the commencement of such meeting.
6.4. Where a director has declared a potential conflict, they must recuse themselves from the consideration, deliberation, and voting on that matter.
6.5. Details of disclosed private interests must be kept by the Chairperson in a confidential register, which is updated annually and accessible only to the Chairperson and CID Manager.
7. Political Activities.
7.1. Directors may not occupy a salaried political party position or hold a leadership position in any political party.
7.2. Subject to clause 7.1 above, directors may engage in lawful political activities, provided they are compatible with their CID responsibilities; exercise proper discretion, particularly in respect of the activities of the CID company; and refrain from making party-political speeches in public or engage in political activities on matters directly affecting the CID company.
7.3. Directors must advise the Chairperson in writing before undertaking any political activity which could give rise to a potential conflict of interest.
7.4. Any director who is doubtful about the application of this rule or the propriety of any political activity must request guidance from the Chairperson in writing.