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MikeS1
Posts: 668
Posted:
Recently, one of our Board Members received a substantial gift (over $100) from one of our current Vendors/contractors. How would you address this problem? Obviously, she must recuse herself from voting on any issues that involve this one vendor but probably needs some additional action. This does not put the Board in a very favorable light. "If common sense were common, we'd all have it!". What would you all do? What are your thoughts on this.
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By MikeS1 on 08/10/2007 6:06 AM
Recently, one of our Board Members received a substantial gift (over $100) from one of our current Vendors/contractors. How would you address this problem? Obviously, she must recuse herself from voting on any issues that involve this one vendor but probably needs some additional action. This does not put the Board in a very favorable light. "If common sense were common, we'd all have it!". What would you all do? What are your thoughts on this.

Mike:

seems to me there was a post similar to this recently. First and foremost you should have a policy that prohibits any member of the BOD from receiving any gifts, discounted services, etc. from any prospective vendor, and it should spell out penalties for doing so which in my mind should be automatic forfeiture of their seat.

To your issue, the president should not allow her to vote or speak on the issue, he should ask her to return the gift and should make note in the meeting minutes of this issue. If you don't have a policy, your BOD should draft one immediately and make it know that this type of behavior is not appropriate.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Aren't we getting a little too official here? I would like to know if the board member already knew the vendor personally? How do we know the "gift" wasn't a gift involving two mutual friends? BOD members are owner's too. They can have personal relationships with people.

I don't know how formal your HOA works. In mine, it's just us good ol' boy/girls living together with a few chosen to represent us. This post made me now question when I got offered "dinner" at a neighbors house, was it to get me to vote their way? mmm...

There's a reason for checks and balances in your system. Even if one board member voted for one vendor, there are still other members able to vote against it. Even the President can see partiality and use that as a basis of making a decision. I know if anyone ever recommended a vendor to me, I'd immediately ask what relationship they had with the vendor. It didn't mean I would deny them if it was a brother of a member. It just meant that I had to be more "politically" correct when speaking about that particular vendor around the member. I knew there was an existing "partiality" but I based everything on performance.

I don't see a problem with the board member getting a "gift" from a vendor. Most vendor's do give gifts or invites to "play golf" in the business world all the time. It's done under the guise of drumming up business. If the HOA members were PAID and NOT volunteer then the gift may matter just to the IRS. The BOD members ARE NOT paid! They are truly volunteers and almost anything given to them would be considered a "gift" under the traditional terms.

Former HOA President
MikeS1
Posts: 668
Posted:
Thanks, Brad - Yes, the attorney has Drafted the document and it's a great little reminder of what we SHOULD be doing. Thanks again.
MikeS1
Posts: 668
Posted:
Melisa - With all due respect, I think that you're stuck in 70's or 80's. You've made too many assumptions here and have asked too many questions. Please do me a favor and if you see any of my posts in the future , just ignore it and pls don't respond. Thanks.
RogerB (Colorado)
Posts: 5,067
Posted:
Melissa, for a HOA Board member to receive any gift from a vendor is a conflict of interest IMO. They leave themselves wide open to speculation, often greatly exaggerated and undeserved. In this example it was over $100. The Board should establish a policy of NO GIFTS and demand the Director return it.

Neighbors having diner with their friends is not the same as a Board member receiving a gift from a vendor or contractor. Having lunch while discussing business is another matter, just don't have over 2 drinks
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It's ONLY 2 drinks? Darn, that explains why I keep waking up to the vendor the next morning!!! Man I am more stuck in the 60's with all that free lovin!


Former HOA President
JeanneK3 (Maryland)
Posts: 562
Posted:
I agree with Roger B. Accepting gifts from a vendor is a conflict of interest and sets a bad example for the community. Why should anyone obey the rules when the board doesn't?
BradD2 (Florida)
Posts: 418
Posted:
The other fun part is that if this came to light in the middle of a law suit it could be considered compensation. As most HOAs are non-profit and the board is prohibited from receiving compensation that would not be a good thing.

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