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APPROVAL IN PRINCIPLE: WHAT DOES IT MEAN?
By Eli Mina, M.Sc.

From time to time a Board or Council may wish to express a favorable position on a proposed project, but is not ready to finalize the commitment to it. To indicate a favorable intent, some Boards adopt a motion “to approve the project in principle”. On the positive side, this approach seems to achieve the desired outcome, namely giving a tentative “green light” for the project.

However, this approach leaves several unanswered questions, such as:

  • What exactly has the group decided? Is the project a “go” or a “no go”?
  • What are staff and outside contractors supposed to do about a project that was approved “in principle”? What must they do to have the commitment solidified?
  • If, based on a positive perception, contractors hire staff and purchase equipment, would they be in a position to take action against the organization if the project does not proceed?

Undoubtedly, an innocent motion to approve something “in principle” can lead to confusion and uncertainty. To avoid such problems, you need absolute clarity as to what commitment is given. This means that motions will need to be written more carefully.

As a first example, suppose a Council is genuinely intrigued by a proposed arts project, to be pursued in partnership with the private sector. However, Council needs answers to some questions before giving the final Okay. Rather than “approving the project in principle,” an appropriate resolution may be as follows:

"Resolved,

A. That the Council of the City of Hopeville express a positive preliminary response to the initiatives proposed in the Arts report, and that Council express its interest in exploring and examining the feasibility of this proposed project further;

B. That the Staff of the City of Hopeville be directed to provide analysis and answers to the following questions on or before Council’s October 31st 2006 meeting:

1. ___________;.
2. ____________; and
3.___________; and

C. That, upon receipt of the answers to the questions stated in clause B of this resolution, Council give further consideration to the project referred to in clause A of this resolution.

As a second example, suppose a land developer is making a re-zoning application that looks sensible and positive. However, Council identifies a few areas of concern and wants the plans modified before considering them further. To avoid being perceived to be giving a commitment to the re-zoning, the following resolution should replace the “approval in principle:”

“Resolved,

A. That the Council of the Village of Happy Valley express its view that the re-zoning proposed in document # ______ seems sensible and positive, and that the proposal appears to clearly demonstrate a substantial effort to balance the need for growth with the need to uphold social and environmental values; and

B. That, notwithstanding its positive impression with the proposal referred to in clause A of this resolution, the Council of the Village of Happy Valley request that changes be made to the proposed re-zoning before it considers it further, with such changes addressing the following deficiencies and concerns:

1. _______ ;
2. _______ ; and
3. _______.

In closing, motions should always be concise, complete and unambiguous. The motion to approve in principle is ambiguous and should be replaced with clearer and more specific alternatives.

.

 



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Information about Eli Mina:

Eli Mina, M.Sc., PRP, is a Vancouver (Canada) based management consultant, executive coach, and Registered Parliamentarian. In business since 1984, Eli consults his clients on board effectiveness, chairing contentious meetings, preventing and dealing with disputes and dysfunctions, demystifying the rules of order, and minute taking standards. Eli's clients come from municipal government, school boards, regulatory bodies, credit unions, colleges and universities, native communities, businesses, and the non-profit sector.

Eli is the author of the newly published "101 Boardroom Problems and How to Solve Them." He is also the author of several other books and publications on meetings, shared decision-making and minute taking (see Eli Mina's Books at www.elimina.com ). Eli can be reached at 604-730-0377 or via e-mail at eli@elimina.com.


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