» Introduction
» Background
» Lord Nolan - Standards in Public Life
» Corporate Governance
» Code of Conduct
» Commencement of Code
» Definitions/Scope of Application
(Paragraph 1 of the Schedule)
» Integrity (Paragraph 2
of the Schedule)
» Conflict of interests
(Paragraph 3 of the Schedule)
» Objectivity (Paragraph
4 of the Schedule)
» Accountability (Paragraph
5 of the Schedule)
» Openness (Paragraph 6
of the Schedule)
» Duty to declare financial
or other interests (Paragraph 7 of the Schedule)
» Acceptance of gifts and/or
hospitality (Paragraph 8 of the Schedule)
» Leadership (Paragraph
9 of the Schedule)
» Annex A - Seven Principles of Public Life
» Annex B - Register of MCC and Selection Panel
members' financial and other interests
» Annex C - Gifts and hospitality register
1. The purpose of this guidance is to help members of magistrates' courts committees and selection panels to implement and understand the Code of Conduct detailed in The Code of Conduct (Magistrates' Courts Committees and Selection Panels) Order xxxx 2000 and who, in doing so, will demonstrate their commitment to the highest standards of public service.
2. The guidance also describes the monitoring arrangements that will need to be put in place to check whether the Code has been implemented and to undertake preliminary investigations into alleged breaches of the Code. (NOTE - For the purposes of the consultation exercise, the proposed monitoring arrangements can be found at Section C of the Consultation Paper.)
3. The Code will bring MCC and selection panel members into line with other public bodies and increase accountability. This is nothing new and is designed to formalise arrangements already in place. Similarly, the Department of the Environment, Transport and the Regions is including in the Local Government Bill, an ethical framework for local authorities which will set standards to be expected of councillors and penalties for those who fall short of the standards.
4. The Justices' Chief Executive should take the necessary steps to implement this Code by drawing its contents to the attention of the MCC members and Selection Panel members and ensuring that each member has undertaken to abide by the provisions.
5. This Code does not impinge in any way on a magistrate's judicial duty or cut across his judicial oath (Endnote 1.).
6. Section 86 of the Access to Justice Act (AJA) 1999 inserts two new sections in the Justices of the Peace Act (JPA) 1997: -
new section 39A empowers the Lord Chancellor, subject to appropriate consultation and Parliamentary approval, to introduce a Code of Conduct to be followed by all members of magistrates' courts committees (MCCs) and the panels that select them; and
new section 39B empowers the Lord Chancellor to suspend or dismiss members of committees or panels who fail to comply with the code, and to provide that a dismissed person may not be re-appointed for a specified period or ever. It also provides the Lord Chancellor power to make regulations for monitoring the code. While there is the power to introduce statutory requirements for monitoring compliance with the Code, Ministers consider that, initially, this can be handled administratively.
7. Legislation already exists on the membership, constitution and procedures of MCCs which provides the Lord Chancellor with a remedy, by way of default powers under section 38 of the JPA 1997, to take action if he considers that a courts' committee, as a body corporate, is failing to properly discharge any duties imposed on them under any enactment.
8. These new provisions are intended to complement the Lord Chancellor's powers to require MCCs to administer the magistrates' courts in an efficient and effective manner.
9. Until now, no power existed to provide a mechanism to investigate any instances of misconduct, lack of probity or lack of propriety or impose any sanction including ultimately the removal of individuals from courts' committees or selection panels, or the prevention of their re-appointment. New sections 39A and 39B have provided the opportunity for the Lord Chancellor to introduce a Code of Conduct and to censure such individuals, should a sufficiently serious breach or breaches of the Code be proved.
10. The Lord Chancellor believes that a Code of Conduct should apply to all magistrates' courts committee members and selection panel members who are responsible for selecting members of the courts' committee and magistrate members of Police Authorities. The Code, which is intended to bring MCCs in line with the rest of the public service and increase accountability, is contained in the Schedule attached to the Code of Conduct (Magistrates' Courts Committees and Selection Panels) Order xxxx 2000.
11. The rules of propriety and regularity have been long established. However, following alleged breaches to the code, a committee was established to look into standards in public life. Lord Nolan chaired the committee, taking evidence from many public officials. The committee made many findings relating to specific incidents but, as part of the report, looked at the wider and more general principles of propriety and regularity.
12. Lord Nolan's report identified seven general principles or standards that public officials must adhere to in discharging their responsibility for taxpayers money. The principles are termed "The Seven Principles of Public Life" (Endnote 2. and Endnote 3.) and have been endorsed by Government. A copy of the Seven Principles can be found at Annex A to the guidance. The Code of Conduct, which will apply to MCC and Selection Panel members, is largely based upon those principles.
13. The origin of Corporate Governance is contained in a report by Sir Adrian Cadbury. Cadbury published a code of practice (the "Cadbury Code") in December 1992 which defined the responsibilities of Chief Executives and Board Members of listed companies to demonstrate to their shareholders effective, efficient and honest business practices, safeguarding shareholders investments and company assets. In 1994, HM Treasury issued a version of the code applicable to public bodies (Code of Practice for Board Members of Public Bodies). The Code of Conduct applicable to MCC and Selection Panel members contains some of these practices, for example, openness, handling conflict of interests and responsibility of individual members. In 1999, the Internal Control Working Party of the Institute of Chartered Accountants, England and Wales (Turnbull Committee) issued the Guidance for Directors on the Combined Code.
14. The Code will come into force on [Summer 2000 - date to be inserted (Article 2 of the Order).]
• Definitions/Scope of Application (Paragraph 1 of the Schedule)
15. Paragraph 1(b) of the Schedule makes clear that the Code applies to: -
all members of magistrates' courts committees (as constituted under section 28 of the JPA 1997, as substituted by s.82 of the Access to Justice Act 1999), including any co-opted members; and
all members of the panels that select them (as detailed in the Magistrates' Courts Committee (Constitution) Regulations 1999 made under section 29 of the JPA 1997 or, in the case of the Greater London Magistrates' Courts Authority, the Greater London Magistrates' Courts Authority (Constitution) Regulations 1999.).
16. Members also includes the non-lay magistrate members of the Greater London Magistrates' Courts Authority i.e. stipendiary magistrates, representatives nominated by the Association of London Government, and persons selected by the Mayor of London. However, it does not include those with a statutory right of attendance to MCC meetings i.e. Liaison Judges and Keepers of the Rolls (Regulation 15, Magistrates' Courts Committees (Constitution) Regulations 1999). Nor does it extend to the Clerk to the Selection Panel, Justices' Chief Executive or other employees of the MCC. Neither does the Code apply to either MCCs or selection panels as individual bodies (where compliance would normally fall to either the MCC or selection panel as a body rather than on individual members).
17. In paragraph 1(c) of the Schedule, reference to a member's partner means not only a person with whom that member lives as a couple but includes a person with whom that member is not currently living but from whom he is not living separate and apart. This is intended to cover those members whose partners may, for example, be working abroad. The partners may be either married or living together in a heterosexual or homosexual relationship.
18. In paragraph 1(d) of the Schedule, reference to Financial and other interest, refers to the direct or indirect (Endnote 4.) financial interests of member or his spouse or partner which members of the public reasonably think could influence judgement. Non-financial (Endnote 5.) interests will cover activities which closely relate to those of the MCC or selection panel.
• Integrity (Paragraph 2 of the Schedule)
19. A member must not make use of his appointment to further his private interests. In particular, a member must not use his position as a member to obtain benefits, preferential treatment or other advantage for himself, his partner, his family, his colleagues, or, in the case of a member of a MCC, employees of the MCC. Nor must he confer benefits, preferential treatment or advantage improperly on others.
• Conflict of interests (Paragraph 3 of the Schedule)
20. Each member of a magistrates' courts committee, or a member of a selection panel, has a personal duty to ensure that his actions uphold the highest standards and should immediately raise any concerns of conflict either at, or preferably before, a meeting. Should such a serious conflict arise, the MCC or selection panel should take appropriate action including where necessary withdrawing from the discussion on the particular issue concerned at an early stage. The MCC or selection panel members have a duty to ensure that the integrity of the MCC or panel is not compromised in any way. The member must ensure the facts raised are recorded in the minutes. MCC and/or selection panel members should minimise the instances of conflicts arising, or appearing to arise, between MCC or selection panel members' private interests and their public duties. An MCC or selection panel member should avoid taking part in any activities that might cause a conflict of interest with his membership of either the MCC or the selection panel. If instances of conflict arise, all MCC and/or selection panel members must ensure that the conflicting interest does not, nor appear to, have any influence upon its decision making.
21. An MCC member or selection panel member has a duty to report any breach of conduct to the justices' chief executive. The Justices' Chief Executive should also nominate a deputy in the event he may not be available in the event of annual or sick leave.
22. While there is no statutory bar to a magistrate sitting on, or being the Chair of, both a magistrates' courts committee or police authority, members should consider whether any conflict of interest, either actual or perceived, will arise if a member of the MCC is also appointed to sit on the police authority.
participate fully in the decision making process? or
participate only in the discussion? Or
withdraw from that part of meeting when discussion is taking place on the item on which he may have an interest?
Q4. Although the selection of the Chairman of a Police Authority is the responsibility of that body, and the Chairman of the MCC is the responsibility of that body, should the same individual be able to hold both offices?
Q5. Although there may be no actual conflict of interest, is the potential for, or perception of, conflict of interest too great?
Q6. Should any member of an MCC also sit on the police authority?
• Objectivity (Paragraph 4 of the Schedule)
23. A member must, when acting in the performance of his duties, take decisions solely in the public interest and when making appointments, awarding contracts, or recommending individuals for rewards or benefits, make choices solely on merit.
• Accountability (Paragraph 5 of the Schedule)
24. A member is accountable to the MCC or selection panels on which he is a member and to the local community and must submit himself to whatever scrutiny of his decisions, actions and lack of action as is reasonable for his office.
• Openness (Paragraph 6 of the Schedule)
25. Members of MCC should conduct all their dealings with the public in an open and responsible way and to comply fully with the Code of Practice on Access to Government Information.
• Duty to declare financial or other interests (Paragraph 7 of the Schedule)
26. All members are required to provide details of their financial or other interests, including those of their spouse or partner, where applicable, to the Justices' Chief Executive. The purpose of this provision is to avoid any danger of an MCC or selection panel member being influenced, or appearing to be influenced, by their private interests in their exercise of their duties. The details should be updated each year and published in a 'Register of Interests' in the MCC's Annual Report. The categories of interests to be declared are: -
Directorships (whether paid or unpaid and including shadow directorships);
employment;
offices or profession, either paid or unpaid;
membership of a partnership;
membership of Lloyds; and
shareholdings with a nominal value greater than £25,000 for fixed interest holding or 1 % of the issued share capital in any company. This will include those held solely either by the MCC or selection panel member or his spouse or partner; jointly with his spouse or partner; or in a representative capacity (e.g. as a Trustee).
27. It is the responsibility of each member to inform the JCE of any changes in circumstances. A sample form for registering a member's financial and other interests can be found at Annex B to the guidance.
• Acceptance of gifts and/or hospitality (Paragraph 8 of the Schedule)
28. Control over the acceptance of gifts must be particularly stringent. The conduct of either an MCC or selection panel members must be seen to be honest and should not foster the suspicion of a conflict of interest. Members should always ensure that they do not give the impression to:
any member of the public or
any organisation with whom they deal or
colleagues
that they may be influenced, or have in fact been influenced by any gift or consideration, to show favour or disfavour to any person or organisation while acting in their official capacity. Therefore, no MCC or selection panel member should accept any gift, hospitality or services from anyone that would, or might appear to, place him under an obligation. All offers of gifts, hospitality or services should be reported to, and recorded in a Gifts and Hospitality Register maintained by, the Justices' Chief Executive.
29. In the event of any gift or hospitality being offered, the MCC or selection panel member should provide the following information to the Justices' Chief Executive: -
the name of the MCC or selection panel member receiving the offer or invitation,
details of the gift or hospitality,
its originator,
the estimated value,
whether the offer was accepted or not; and,
if a gift was accepted, how it was disposed of.
30. Gifts and hospitality may be accepted only in the circumstances set out below but will still need to be reported to the Justices' Chief Executive and recorded in the Register: -
isolated gifts of a trivial character or inexpensive seasonal gifts, such as calendars;
conventional hospitality provided it is normal and reasonable in the circumstances.
31. Where an MCC or selection panel member accepts gifts and/or hospitality, he must make it clear that neither the gifts and/or hospitality are accepted in return for, or in anticipation of, any action.
32. What is normal and reasonable will largely depend on the extent to which a member of the MCC is personally involved. There is no objection to the acceptance of, for example, an invitation to the annual dinner of an organisation with which the MCC has regular contact, or to working lunches in the course of official visits or business relationships but it must not be frequent, regular or lavish.
33. The JCE should ensure that the Gifts and Hospitality Register is open for public inspection upon request at any reasonable time.
34. A sample Gifts and Hospitality Register is attached at Annex C to the guidance.
• Leadership (Paragraph 9 of the Schedule)
35. A member must promote and support this Code of Conduct by leadership and example and treat colleagues and, in respect of a member of the MCC, employees of the MCC, in a way that engenders mutual respect at all times.
• Selflessness
Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family or their friends.
• Integrity
Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties.
• Objectivity
In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards or benefits, holders of public office should make choices on merit.
• Accountability
Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
• Openness
Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
• Honesty
Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
• Leadership
Holders of public office should promote and support these principles by leadership and example.
(Please refer to paragraph 7 of the Schedule to the Code of Conduct)
Note 1: The Register will be published in the magistrates' courts committee Annual Report each year. MCC and Selection Panel members must ensure that all amendments to their interests are registered promptly, and in particular in good time to permit the publication in the Annual Report.
Note 2: If applicable, a separate form should be complete in respect of your spouse or partner.
| Name
|
| 1. Directorships (whether paid or unpaid and including shadow directorships) |
| |
| |
| |
| 2. Employment |
| |
| |
| |
| 3. Remunerated Employment/Office/Profession/Membership of Lloyds |
| |
| |
| |
| 4. Membership of a partnership |
| |
| |
| |
| 5. Membership of Lloyds |
| |
| |
| |
| 6. Shareholdings with a nominal value greater than £25,000 for each fixed interest holding or 1% of the issued share capital in any company |
| |
| |
| |
| 7. Other Interests to declare |
| |
| |
| |
Note 3: "Shareholding" includes shares held solely, jointly, or in a representative capacity (including, without limitation, shares held as trustee).
(Please refer to paragraph 8 of the Schedule to the Code of Conduct)
| Description of gift or nature of hospitality:
|
| |
| |
| |
| Received from (Name, occupation and position held):
|
| |
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| Received by:
|
| Date received:
|
| Estimated cost:
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| Accepted for self or others (if applicable):
|
| Manner in which gift was disposed (if applicable):
|
| Authorised by:
|
| Date:
|
See Appendix 10B of the Lord Chancellor's Directions for Advisory Committees on Justices of the Peace.
Committee on Standards in Public Life (the Nolan Committee), First Report - Cm 2850-I
Spending Public Money: Governance and Audit Issues - Cm 3179, March 1996
Indirect financial interests arise from connections with bodies which have a direct financial interest or from being a business partner of, or being employed by, a person with such an interest.
Non-financial interests include those arising from membership of clubs and other organisations.