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Forums > Homeowner Association > HOA Discussions

Subject: Conflict of Interest/Unethical Conduct

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MaryT1
(Georgia)

Posts:7

08/13/2006 7:30 AM
What should the other members of a board do if another member discloses that have participated in unethical and a major conflict of interest that may render the HOA open to a law suit. Example: Board President has the HOA landscaping company perform work on his yard and places it under common ground responsiblities of the HOA. His direct neighbors complain and demand the same treatment. The Board denies the request and as a result his neighbors file a lawsuit. Are the other members of the board liable if they did not have prior knowledge of this unethical conduct or conflict of interest.

RogerB
(Colorado)

Posts:3726

08/13/2006 8:16 AM
Mary, when the BOD denighed the neighbors request they should have thanked the neighbor for making them aware of this allegation; advised they were investigating the illegal action; and if found guilty appropriate action would be taken. The appropriate action is to hold a Hearing regarding the charge against the President. If found guilty the President should be requested to resign and reimburse all expenses involved. If the President refuses to resign the BOD should remove him from office but can not remove him from the BOD. If he refuses to reimburse expenses the BOD can assess the property for the work done on the property at the expense of the association. I would now advise the neighbor to encourage them to drop their suit. The BOD places themselves in jeopardy if it does not take action once they are aware of this dishonest action.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

MaryT1
(Georgia)

Posts:7

08/13/2006 12:39 PM
What is my next action if the other members of the BOD do not see this as a conflict because they have also recieved the same services? There are 5 BOD members and 3 live in the area affected. They would/or have benefited from this president's actions.

RogerB
(Colorado)

Posts:3726

08/13/2006 3:30 PM
Mary, is this and unethical major conflict of interests or is it something one could see as a conflict? There is a big difference to me. The first suggested to me wrongdoing the second only something you perceive as something done in the area which may be a conflict. If I felt it was definite wrongdoing I would make a motion to correct it at a Board meeting, request each member's vote be recorded in the minutes, and if the motion failed to acknowledge and correct the wrongdoing I would resign from the Board. If this goes to court those Board members approving these actions can be held personably liable and it could cost them thousands out of their own pocket.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

MaryT1
(Georgia)

Posts:7

08/13/2006 4:17 PM
Thanks so much for your assistance. You were right on target with what my attorney advised. You are very informed and your advise is such a huge benefit to the community at large. Shame I had not accessed this site prior to 2 years of frustration.

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Forums > Homeowner Association > HOA Discussions > Conflict of Interest/Unethical Conduct

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