Comprehensive Standard 3.2.3: Governance and Administration. Board, Conflict of Interest
The governing board has a policy addressing conflict of interest for its members.
Board Rule 106 of the Board of Trustees of the University of Alabama directly addresses ethics and conflicts of interest for board members and administrators. 
The central tenet of the policy is that members of the Board of Trustees are held to a higher standard in the conduct of its business than is the norm in the everyday business world. In some cases, this standard may extend beyond the requirements of common law and statutes and serves the purpose of eliminating even the appearance of conflict of interest.
Board Rule 106 references § 13A-10-62 of the Alabama Code  that requires that a public servant disclose a potential conflict of interest when that individual is an executive officer or owns a substantial portion of a non-governmental entity participating in a transaction with a governmental organization.
Members of the Board of Trustees must disclose in writing any potential conflict of interest to the President pro tempore of the Board of Trustees. The President pro tempore can refer the matter to the Executive Committee, which has final authority for determining whether a conflict of interest exists. The Executive Committee can consult the Public Review Committee in troublesome cases.
Portfolio of Evidence
 Board of Trustees of the University of Alabama, “Board Manual–Rule 106–Ethics and Conflicts of Interest,” University of Alabama System, http://sacs.ad.uab.edu/default.asp?main=Audit_CS/TrusteesBoardManual_Rule106.pdf.