SERVING AS MEMBERS OF GOVERNANCE BODIES - Ethics of Collecting

Ethics of Collecting

Collectors may be appointed as members of Governance Bodies of Institutions based on their expertise, experience, knowledge, competence, ability to advocate for the Institution, and other substantive art-related skills. They accept the appointment and perform the related activities in the interest of the Institution, without expecting any direct counterpart for themselves or their collection.

1

MERIT-BASED MEMBERSHIPS IN GOVERNANCE BODIES

Successful bank trader and reputable collector Angela has just received a phone call from ARMO Museum inviting her to join their acquisition committee. Angela is very happy as she feels she can contribute with her knowledge and her unique point of view. During a follow up call with ARMO’s chief curator Sanjay, Angela understands that the museum is expecting her to make a donation during her years as a member of the committee. “We have three other collectors on the committee and two on the Board of Trustees. They’re all very committed to supporting the institution. If you wish to have a range of the donations they made in the past, I can get my assistant to send you some non-confidential benchmarks” says Sanjay nonchalantly over the phone. This makes Angela very awkward as she feels she is not being appointed for her substantive contribution, but for her potential to contribute financially. What should Angela do?

A She should not say anything and proceed to accept the appointment. Even if she feels uncomfortable, nobody can force her to make a donation. She will see how she feels when the time comes.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B She should not say anything and proceed to accept the appointment. Institutions are always in need of support and it is normal for collectors to help them, especially when they also have the privilege of being members of their governance bodies. In a way, she will be able to push her agenda in terms of artists and trends and that comes with a price tag.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C She should state clearly that she intends to serve the committee in the interest of ARMO but that she does not want to feel like she has to buy her seat on the committee. If ARMO is happy with what she has to offer as an expert that’s great, but it should not be linked to any funding. If specific funding opportunities arise in the future, depending on the project and the need, this can be discussed on a caseby-case basis, but she is not simply promising a donation as a counterpart of her appointment. “It’s an acquisition committee and you should select those who can bring substance to the discussion to acquire the best works for the museum, and not just appoint anyone who can pay” she responds to Sanjay.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

2

DISCLOSING CONFLICTS OF INTEREST

Collector Andreas is a young successful architect. He has recently been invited to be a member of the board of the ARMO Museum. While not his main professional activity, he also used to own 40% of a contemporary art gallery downtown but he sold his shares to his sister, who now owns 50% of the gallery. Should Andreas disclose these facts to avoid any conflict of interest with his future functions within the museum committee?

A No. He no longer has any interest in the gallery and therefore will not be biased towards the interest of the gallery while operating within the museum committee. He is a decent man, and he will never push for artists from his sister’s gallery to be bought by ARMO.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B Yes. And he will certainly not be able to be appointed as the conflict of interest is very acute.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C Yes. The museum management need to evaluate whether there is a potential or actual conflict between Andreas’ future duty to operate exclusively in the interest of the committee, and his duty to do the best for his family’s interests. Depending on the details of the facts, the museum may propose some mitigating measures or may decide that the conflict is too acute, and Andreas cannot be appointed.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

3

DISCLOSING CONFLICTS OF INTEREST

Collector Aiyana is a member of an acquisition committee at FRAME foundation for contemporary art. Aiyana is very fond of the work of artist Bayani and has recently purchased a set of five drawings from his gallery. She sees a lot of potential in this young talented artist and would like to share her knowledge of and excitement about his work with the foundation so they could also benefit from discovering this artist early in his career. When submitting her acquisition proposal for Bayani’s work, shall she mention the fact that she owns works from Bayani?

A She should not propose Bayani’s work at all. If a collector owns works from a specific artist, they must never push the sales of that artist on any institution they are associated with as this may be perceived as attempting to raise the value of their own collection by having that artist become a part of a famous collection.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B She should openly disclose that she owns the five drawings and ask the committee to apply their conflictof-interest procedure. If the committee has no such procedure yet, she should push for the prompt adoption of one, and in the meantime ask the committee to discuss what the best course of action would be for her proposal. She should also offer that she is ready to abstain from voting if the committee believes this would help.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C This is not necessary. She is doing a great job at sharing her knowledge with the foundation and this is a great opportunity for them. At the end of the day, she was appointed exactly for this, to bring her knowledge about artists to the table and help the foundation’s collection progress by including new and interesting works.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

4

NOT USING THE MEMBERSHIP TO BENEFIT OWN COLLECTION

Collector Kyriakos is so very pleased to have been appointed to the board of trustees of ARMO Museum. Two years have passed, and he feels a lot more comfortable with the institution and the other members. Before joining the board, he was a heavy funder of the museum’s activities for years. The museum is struggling with next year’s program, so Kyriakos decides that at the next board meeting, he will propose a show of his collection, that he can fund himself, as a way to help the museum financially. He reasons: “With my long-standing support of the institution and my seat on the board, I feel that this is a legitimate proposal. I have very important artworks and it is in the interest of the museum and the local community to see my collection. Of course, they can always say no.” Is Kyriacos’s plan appropriate?

A No. Kyriakos should not propose an exhibition of his collection. By doing so, he would be abusing his power within the institution, and this may be viewed as him trying to raise the profile of his collection by being shown in a reputable institution. It would also be inappropriate to link the proposed exhibition to funding as this could amount to Kyriakos having paid for an exhibition, regardless of any curatorial choice of the museum.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B Yes. He was a heavy funder of the institution, hence showing his commitment to and passion for ARMO over the years. It’s time for the museum to reciprocate, especially since the collection is of high quality. Also, there are no internal rules at ARMO or external regulations that impede this.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C Yes. It is his role as board member to propose interesting exhibitions. His collection will certainly attract a lot of visitors, sell plenty of tickets, is of interest to the local community, and is also self-funded. Certainly, ARMO cannot refuse. In addition, they are struggling with ideas and with funding again.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

5

AVOIDING INSIDER TRADING

Collector Aiko is a member of the board of trustees of ARMO Museum, she takes her appointment very seriously and systematically attends all board meetings. At today’s meeting she heard that ARMO is planning to have an exhibition of young artist Joshua, who is just out of the fine art school but showing incredible talent already, which she can see from the images shown at the meeting. Aiko immediately thinks of buying a few works from Joshua as certainly his work must still be affordable at this stage. Can Aiko do that?

A No. But she can ask her wife to do that using her maiden name. If it is another person that buys the works, there should not be any issues with that.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B No. Aiko would be using privileged information that she acquired while serving an institution for her personal enrichment. This would likely be considered unfair towards other collectors, abusive towards the museum and manipulative vis-à-vis the market.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C Yes. Aiko has been working very hard for the museum and this type of inside information is used all the time by members of the boards. Really, it’s no big deal, and it will also help the artist.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

6

REJECTING UNDUE INCENTIVES OR REWARDS

Collector Magnus is preparing to propose a performance by artist Wanda at the acquisition committee of ARMO Museum. When he contacts Wanda’s gallery to obtain more information about the work and its price, gallerist Alina is so excited that she says: “This is so absolutely great Magnus, thank you ever so much. I’ll be very happy to give you a big discount on the next work you buy from the gallery, especially if it’s one of Wanda’s.” Magnus is hesitant to respond to this statement. What should he say?

A He should respectfully decline the offer, express his gratitude, and say that he’d rather avoid giving the impression that he was presenting Wanda’s work to the committee in return for better prices on purchases for his own collection.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

B He should respectfully decline the offer, express his gratitude and say that he’d rather that Alina ensures he’s invited as a VIP guest, expenses paid, to all art fairs that the gallery participates in.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

C He should accept the offer since it came unsolicited from the gallery and it will benefit the artist.

According to the code, the correct answer is this. If you have any questions or feedback on the code, we are very happy to listen to it so please contact us .

Well done, this is the correct answer according to the code.

ENDORSE THE CODE

Add your name publicly as a supporter.

CONTACT

Send feedback & suggestions. Code will be reviewed regularly. Enter email for updates.