This is an interesting situation. It would be useful to know more about the background and circumstances of how the initial arrangements were established. It is assumed that the school is a community school but the legal set up and contractual arrangements for both organisations are not clear. Are they separate entities from the school and are both operations hiring the school premises? If so, does the school have a ‘use of premises policy?’
That said, it is a pity when organisations fall out. This can have a knock-on effect on the work people do, in this case providing out of school provision for children. Legal issues are obviously on-going and it is hoped that the situation will be resolved swiftly.
Governors must always complete a declaration of business interest each year, usually at the first governing body meeting in the Autumn term. Governors Cymru Services has information on this, as well as a template form – http://governors.cymru/publications/2019/08/01/register-business-and-other-interests/
The Local Authority may also have business forms that governors can use.
Any governor who may benefit from the outcome of the decision, must declare an interest in any specific agenda item and withdraw from the meeting, therefore, taking no part in the discussion or voting.
It is good practice for the Chair of governors at the start of each meeting to check that there are no conflicts of interest relating to any of the agenda items.
If there is any doubt as to whether a governor should withdraw or not, the governing body will need to make the decision.
Detailed information regarding the restrictions on persons taking part in proceedings of governing body and committees can be found in Chapter 4 of The School Governors Guide to the Law https://gov.wales/school-governors-guide-law
It is always best to check out the position if, as a governor, you are unsure. Impartiality and objectivity need to prevail at all times.
The case study also indicates that a complaint arose and an investigation took place. What is not clear is the nature of the complaint i.e., is the complaint about a governor with a perceived conflict? Further information on complaint processes can be found here https://gov.wales/school-complaints-procedures-guidance
Please refer to the section on special circumstances page 22 section 4.8 – complaint about a governor.
Information about the use of school premises is available in Chapter 26 of the School Governors Guide to the Law: https://gov.wales/school-governors-guide-law