DennisO (Florida)
Posts: 3
Posts: 3
Posted:
Regarding voting rights. Does a Director have to recuse himself/herself from a vote if the issue relates to that Director's property. If so where is it stated? I cannot find it anywhere....denniso
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Conflict of Interest
Started by DennisO • 4 replies • 1630 views
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MartyD (Florida)
Posts: 43
Posts: 43
Posted:
It would be the proper thing to do.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Yes Dennis, there is a conflict of interest so the Director should recuse themself - even if there is nothing in the controlling documents. Following is an example of an amendment we proposed and was added to the Bylaws of HOAs we manage.
6.5 Conflict of Interest.
If any action taken by the Board would financially benefit a director or a member of their family, that director shall declare a conflict of interest for that issue. The director shall not participate in discussion nor influence other Board members in any manner and shall not vote on that issue. This shall not be construed to invalidate any provision of the Declaration, or other documents that more strictly defines conflicts of interest or contains further limits on participation by a director who may have a conflict of interest. Any conflict entered into in violation of this section shall be void and unenforceable.
6.5 Conflict of Interest.
If any action taken by the Board would financially benefit a director or a member of their family, that director shall declare a conflict of interest for that issue. The director shall not participate in discussion nor influence other Board members in any manner and shall not vote on that issue. This shall not be construed to invalidate any provision of the Declaration, or other documents that more strictly defines conflicts of interest or contains further limits on participation by a director who may have a conflict of interest. Any conflict entered into in violation of this section shall be void and unenforceable.
JulieS (Georgia)
Posts: 412
Posts: 412
Posted:
The board of directors have a fiduciary responsibility to the association...they shouldn't serve for personal gain.
We just had our annual meeting and election. One of our members submitted an ACC request back in December for planting trees. It was denied and a hearing held in which we issued a variance allowing for one of the three trees planted. This person submitted 2 or 3 additional requests to plant trees in which they were denied.
In February, this person, along with another who petitioned for a special meeting 2-years ago to remove the board, went around collecting proxies to 'stuff the box'. Of course, the two of them were 'elected' to the board along with one other person they recruited (I'm sure they thought they would have the majority vote on everything since there are 5 directors).
Two days after the election, this person and her friend were reviewing her yard, discussing the planting of trees, and another ACC request was submitted. The board informed her that she wouldn't be able to vote on her own ACC request and she doesn't understand why. This person has now involved the third person that is part of their group as he does yard maintenance for a living.
I suppose we can give this person kudos for not giving up but I have always believed that her sole reason for wanting to be on the board is to benefit herself. This, coming from a person who wants to keep to herself, thinks the covenants are stupid and shouldn't be enforced, doesn't understand why meeting minutes are taken, and wants to lower the dues.
This is why board members are not allowed to vote on their own issues...it is unethical.
We just had our annual meeting and election. One of our members submitted an ACC request back in December for planting trees. It was denied and a hearing held in which we issued a variance allowing for one of the three trees planted. This person submitted 2 or 3 additional requests to plant trees in which they were denied.
In February, this person, along with another who petitioned for a special meeting 2-years ago to remove the board, went around collecting proxies to 'stuff the box'. Of course, the two of them were 'elected' to the board along with one other person they recruited (I'm sure they thought they would have the majority vote on everything since there are 5 directors).
Two days after the election, this person and her friend were reviewing her yard, discussing the planting of trees, and another ACC request was submitted. The board informed her that she wouldn't be able to vote on her own ACC request and she doesn't understand why. This person has now involved the third person that is part of their group as he does yard maintenance for a living.
I suppose we can give this person kudos for not giving up but I have always believed that her sole reason for wanting to be on the board is to benefit herself. This, coming from a person who wants to keep to herself, thinks the covenants are stupid and shouldn't be enforced, doesn't understand why meeting minutes are taken, and wants to lower the dues.
This is why board members are not allowed to vote on their own issues...it is unethical.
PaulM (Pennsylvania)
Posts: 1,347
Posts: 1,347
Posted:
JulieS:
I agree. It is obvious why a board member is not allowed, ethically, to place a vote for their own situation.
How on God's Green Earth does a community 'find' residents to run for the Board who have no personal agenda or feel they may have personal gain by being on the Board?
It's a fine line for a resident to have an interest in their community but then to have absolutely no personal gain intended as a reason for wanting to be on the Board. For those who have no interest or no personal gain intended in wanting to 'change' R&R for the best reasons, or to seek additions/changes to covenant docs, are the ones we will never hear from because they are not to be seen.
So, we are left with those who do have an interest and hopefully their 'personal gain' will be for others' personal gain as well, and the community as a whole. We are but human beings, and human nature will always need to be tempered and dealt with.
I agree. It is obvious why a board member is not allowed, ethically, to place a vote for their own situation.
How on God's Green Earth does a community 'find' residents to run for the Board who have no personal agenda or feel they may have personal gain by being on the Board?
It's a fine line for a resident to have an interest in their community but then to have absolutely no personal gain intended as a reason for wanting to be on the Board. For those who have no interest or no personal gain intended in wanting to 'change' R&R for the best reasons, or to seek additions/changes to covenant docs, are the ones we will never hear from because they are not to be seen.
So, we are left with those who do have an interest and hopefully their 'personal gain' will be for others' personal gain as well, and the community as a whole. We are but human beings, and human nature will always need to be tempered and dealt with.
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