"38. No Director shall be regarded as having a conflict of interest solely because he or she is also eligible to receive the support of the Foundation."
Is this a standard clause for all not-for-profit limited companies, or a clause added only by FMF?
All companies have to identify areas where there may be conflicts of interest. Below is the best explanation I can find and I would guess that the wording in the clause pertained mainly to the interests of Smethurst, Corner & Kennedy.
http://www.blueavocado.org/node/545"Conflict of interest" or "benefit from interest"?
In practice, what makes something a conflict of interest can also end up being a benefit from interest, or a good arrangement for the nonprofit. For instance, the board member who owns a building may reduce the rent for the nonprofit. Or the nonprofit may benefit from working with the law firm of a board member, because that board member will ensure that the firm will do excellent work and will charge fairly or even at a discount.
Community organizations are based in their constituencies, and hold themselves accountable to their constituencies. Accordingly, we believe it's important to have parents on preschool boards, social service clients on the boards of providers, and artists on the boards of arts councils. But consider the potential conflicts that can arise: In a nonprofit preschool where many of the board members are also parents, these individuals might feel pulled in two directions about whether the preschool should raise tuition in order to replace the roof. And what about the board member/client who utilizes a service of the agency that isn't used by many other people, and as a result, has a personal stake in the service that the staff is recommending be discontinued?
Such situations are not infrequent in nonprofits. They are important reminders for nonprofit boards to recognize the twin aspects of benefit and detriment that can result from a potential conflict-of-interest situation.