| Circular Number | 2024-29 |
| Issue date: | 16 February 2024 |
| Application: |
All directors (board members) of public entities All other statutory office holders, as defined in section 4 of the Act, except:
|
| Resources: | Code of Conduct for Directors of Victorian Public Entities 2024 |
| Enquiries: | Integrity and Oversight branch Victorian Public Sector Commission integrity@vpsc.vic.gov.au |
Key points
The Victorian Public Sector Commissioner has issued the Code of Conduct for Directors of Victorian Public Entities 2024 (the Code) to update and replace the previous 2016 Code.
The Code:
- clarifies what directors must and must not do in the performance of their duties
- introduces restrictions on lobbying activities that can be undertaken by board members
- includes declaration obligations for directors who previously engaged in lobbying activities that may relate to the public entity they serve
- modernises the language in the Code, making it easier to read.
It is vital that members of Victoria’s public boards act – and be seen to act – in good faith and in the best interests of the public entity that they govern on behalf of all Victorians. The Code sets out the required behaviours that promote adherence to the public sector values, including acting with integrity, honesty, fairness, due skill, care and diligence, and in an impartial and apolitical manner.
Date the Code commences
The Code takes effect on 1 March 2024.
Requirements
All board members of Victorian public entities must be aware of and comply with the binding obligations placed upon them in the Code.
I recommend that directors, and other public officials to whom the Code applies, familiarise themselves with the Code’s requirements and discuss them with the other members of their board. Board members must comply with these requirements individually and collectively.
Summary of changes
The Code introduces restrictions that apply to directors that have been or are engaged in lobbying activities (item 3.13).
Directors must not engage in any lobbying activity that may relate to the functions of the public entity. Confirmation must be provided at the start of each board meeting.
If a director previously engaged in lobbying activities that may relate to the functions of the public entity, including activities undertaken in other jurisdictions, this must be declared to the board as soon as practicable.
Former lobbying activity must be declared regardless of whether it occurred:
- prior to the directors’ appointment to the board, or
- prior to the commencement of the Code.
Background
The VPSC is committed to driving a public sector that is apolitical, accountable and trusted. In addition to the VPSC’s role in setting public sector standards of behaviour, the Independent Broad-based Anti-corruption Commission’s Operation Clara report recommended that the Code be updated to preclude board members undertaking lobbying activity that relates to the functions of the public entity.
The VPSC remains committed to supporting public sector directors and statutory office holders understand the importance of their roles and the responsibilities they have both to the board they serve on and the broader Victorian community.
Further resources to assist board directors can be found on: https://www.boards.vic.gov.au/resources-boards.
Scope
The Code applies to and is binding on all directors (board members) of public entities and all other statutory office holders, as defined in section 4 of the Act, except:
- statutory office holders of a special body
- statutory office holders excluded by a specific declaration issued by the Victorian Public Sector Commissioner.