The governing bodies of universities and colleges must ensure appropriate propriety and transparency in the governance of their institution. As bodies who receive public funding, all institutions must act within the powers set out in relevant legislation and their actions could be challenged in the courts through the process of judicial review. The public nature of the governing body’s role, its financial accountability through the relevant funding bodies to devolved administrations and/or ultimately to Parliament, its stewardship of substantial public funds, and not least the good name of the institution and the interests of its students, all demand very high standards of conduct in exercising its functions.
A key tenet of public service and of the 'Nolan Principles' is that governors should act with integrity and transparency, and above all, must serve the interests of the organisation and not their own. Every new governor and all relevant senior officers should complete a declaration of interests, which should be kept up-to-date and reviewed at least annually. Governing bodies should also have an agreed process for how governors with a declared interest should behave.
Governors must also guard against conflicts of interest that arise outside formal meetings. The areas of greatest vulnerability are those involving considering tenders and awarding contracts.