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Subject: Conflict of Interest - President BOD and Committee Chair

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ElaineJ
(Virginia)

Posts:2

04/02/2006 1:06 PM
My husband and I are both involved in the HOA. I was a committee chairman (beautification of common areas) and he later became the president of the BOD. A board member who was newly elected told my husband that he has a 'conflict of interest' with me serving as a chairman of my committee. We don't see it. Nothing that my committee advises to the BOD can personally benefit he or I. We did have a recent decision put before the board to increase the budget for a project. He had to break a tie vote and his vote was in favor of the increase (which our committee was asking for). Is this a conflict for him to have to vote on an issue that I am advocating for my committee? What were his options? If this is a conflict, what then are our options? Thanks!

HaroldS
(Arizona)

Posts:904

04/02/2006 3:00 PM
You don't say how much the budget increase was for, but if a board was deadlocked it doesn't sound like much consensus. And yes I think your husband breaking the tie was a conflict of interest since your committee was asking for this increase. If the budget amount was the problem, he should have asked you to revise and resubmit your request. Harold

RogerB
(Colorado)

Posts:4686

04/02/2006 6:11 PM
There is no conflict by you being a committee chair. However there is a conflict for your husband. It would have been appropriate him to vacate the chair and leave the room while the committee you chair discussed their budget needs and a vote was taken. With a tie your proposal would fail. I suggest you consider resubmitting a revised proposal that would find favor with a majority of the other board members to correct this conflict of interest problem.

BarbaraM7
(Virginia)

Posts:86

11/16/2007 7:20 PM
Do we have a conflict of interest when a the Secretary of the Board votes on issues concerning her boyfriend's house, who owns a house in our community, but rents it out, and lives at her house in the same community.

PaulM
(Pennsylvania)

Posts:1347

11/17/2007 9:39 AM
BarbaraM7: Absolutely!

SusanW1
(Michigan)

Posts:5202

11/18/2007 3:01 PM
Whoa-a-a, here! Your bylaws MUST define "Conflict of interest" to be a mandatory. Otherwise you refer to the parliamentary procedure definition - only when a person is apt to benefit in a pecuniary (monetary) way. The Board member can be asked to abstain from voting, but cannot be forced to not vote. And there is no reason to leave the room or hide your face when a motion is being considered, whether that involves relatives or business partners.

DonnaS
(Tennessee)

Posts:5671

11/19/2007 1:34 PM
I am having a very difficult time with understanding where a "conflict of interest" comes into play here. A committee chair presents a study result to the BOD and her husband, who is the President, has to leave the room? Because he is what? President of the Board? Come on folks. Committees have absolutely no power to vote and take actions on any financial decisions. It is not like her committee was asking the Board to give her something personally that would benefit her or her husband. Sometimes we get too far from realistic and nit pick a situation to little pieces and then none of it makes sense. He had every right to vote on this matter.

BradP
(Kansas)

Posts:2491

11/20/2007 9:18 AM
I see no conflict of interest in the above described scenario. Unless your bylaws or CC&R's speak to it there is no conflict.

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Forums > Homeowner Association > HOA Discussions > Conflict of Interest - President BOD and Committee Chair

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