If you think you or a relative will benefit from the board's decision you must declare a conflict of interest. The benefit might be, for example, gaining a contract which has not been openly tendered, or access to information which might influence your own business decisions.
Members must act in good faith, in the interests of the company or entity in which they serve. There is always potential for the member's own personal interests to conflict with the entity's interests, for example, the use by members of confidential information received in their capacity as members, in order to benefit financially. This is particularly relevant if a member has an interest in a product or service which is required by the organisation.
Procedures are clearly set out for participating in board decisions in which members have a personal interest. If members are unsure whether a conflict of interest exists they should discuss this with their chairman. Unless the conflict is material and ongoing, declaring the interest will not prevent the member from continuing to serve on that board. (IoD BP 1996/3) Also see Annex Two on the State Services Commission website (http://www.ssc.govt.nz/documents/Board_Appointment_Guidelines.htm)