Regents and executive officers of the University of Michigan, and the senior officers of the University at Dearborn and at Flint, shall at all times act in a manner consistent with their fiduciary responsibilities to the University and shall exercise particular care that no detriment to the University results from conflicts between their interests and those of the University. If a Regent or an executive/senior officer believes that he or she may have a conflict of interest, the Regent or executive/senior officer shall promptly and fully disclose the conflict to the secretary of the Board of Regents and shall refrain from participating in any way in the matter to which the conflict relates until the conflict question has been resolved. The minutes of a Regents meeting where a disclosure of a conflict or a possible conflict of interest is made shall reflect the disclosure and that the Regent or executive/senior officer having such abstained from participation in the matter.
A Regent or executive/senior officer is considered to have a conflict of interest when the Regent or executive/senior officer or any of his or her Family or Associates either (i) has an existing or potential financial or other interest which impairs or might appear to impair the Regents or executive/senior officers independence of judgment in the discharge of responsibilities to the University, or (ii) may receive a material, financial or other benefit from knowledge or information confidential to the University. The Family of a Regent or executive/senior officer includes his or her spouse, parents, siblings, children and, if living in the same household and sharing expenses, other individuals. An Associate of a Regent or executive/senior officer includes any person, trust, organization or enterprise of, in or with which the individual or any member of his or her Family (i) is a director, officer, employee, member, partner or trustee, or (ii) has a financial interest that represents 5 percent or more of his or her assets or any interest that enables him or her, acting alone or in conjunction with others, to exercise control or to influence policy significantly, or (iii) has any other material association.
The secretary shall consult with the president and general counsel regarding all conflict questions of which the secretary is informed and shall report regularly to the Board of Regents regarding any unresolved conflict questions. This policy statement is to be interpreted and applied in a manner that will best serve the interests of the University. In some cases it may be determined that after full disclosure to those concerned that the Universitys interests are best served by participation by the Regent or the executive/senior officer despite the conflict. The University will assist the Board in determing if such proposed participation violates the state conflict of interest laws.
This policy is in addition to any obligations imposed on a Regent or executive/senior officer by the state conflicts of interest laws, P.A. 1968, Nos. 317 and 318, as amended.
The secretary shall distribute annually a copy of this policy statement to each Regent and executive/senior officer.