Conflict of interest

Yes it is a BIG conflict of interest.

Are you on the Board? A conflict of interest could occur if the PM gave this director any special breaks, e.g., didn't charge the director with a violation that he charges against other owners with the same violation.

The director would engage in wrong behavior if s/he makes any motions or votes on matters that affect your contract with the PM, e.g., anything involving the PM's wages, continuing the contract. The director needed to "rescuse" self from voting on any matters involving the PM.

But "influence" is not a conflict matter. There are 3 or more directors on the board and they can vote against this director when misguided. If a majority of directors do not like his conduct, they can vote to terminate th contract.

definitely an issue, check your bylaws and see if they address conflict of issue?
If not below is an example of a Conflict of interest policy that every HOA should have. I/We are trying to get it amended/codified into our bylaws.

BOARD OF DIRECTORS
CONFLICT OF INTEREST POLICY

(Date)
(1) Individuals elected to the Board of Directors (the “Board”) of _________________
Association (the “Association”) shall not engage in activities that might interfere
with the discharge of their responsibilities to the Association or in transactions that
reasonably might affect the judgments they exercise on behalf of the Association.
(2) A conflict of interest exists when the interests or concerns of any Director are, or
may be seen as, conflicting or competing with the interests or concerns of the Association. This includes where a Director may personally benefit, directly or indirectly,
by a decision made by the Board. Such a conflicting or competing interest may,
but does not necessarily have to, involve an outside organization that has received
funds from the Association, has granted funds to the Association, or has provided
the Association with goods or services. An “Outside Organization” shall mean any
entity, person or business organization other than the Association.
(3) A Director who serves as a director, trustee, officer, staff member, employee, consultant or in a similar capacity to an Outside Organization that is currently providing
funds to the Association, or is providing goods or services to the Association, or is
receiving financial support from the Association, or has some other direct tangible
financial relationship with the Association shall include such information on a form
that the Association will collect annually, and shall provide updated information to
the Board as circumstances change. In addition, if any immediate family member of
a Director also serves in a similar capacity for an Outside Organization of the type
described above, such Director shall include such information on his or her annual
reporting form and any updates.
(4)(a) When any such conflict of interest is relevant to a matter requiring action by the
Board, the interested person shall call it to the attention of the Board, or any
relevant Committee, and such person shall not vote on the matter; if appropriate
such Director shall also absent him/herself from the discussion of the matter.
Specifically, in considering a request to provide grant, loan or other funds to, or
to borrow funds from, or to contract with, an Outside Organization with which a
Director is affiliated, the concerned Director shall notify the Chairperson of the
Board, or the Chairperson of the Committee, who will inform the Board, or the
Committee, of the relationship of such Director to the Outside Organization that
is the subject of the matter before the Board, or the Committee, and such Director’s relationship, if any, to the consideration and development of the proposal
before the Board, or Committee. If there is a potential situation of this nature
but a Director is not certain if the circumstances come within such procedure,
such Director may consult with a member of the Board of Directors. The Director
shall then disclose the matter to the Board and the Board shall vote on the best
course of action.
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(4)(b) The minutes of the meeting of the Board, or any Board committee, shall reflect
that the potential conflict of interest was disclosed, that the interested person did
not participate in the voting on such matter, and, if that was the case, was not
present during the discussion of such matter.
(5) The Chairperson shall annually prepare, and circulate to the entire Board, a list of
affiliations of Board members with Outside Organizations that may create conflicts.
Unless otherwise notified, the Chairperson may assume that past affiliations are
continuing.
(6) A copy of this Conflict of Interest Policy shall be furnished to each current Director.
All new Directors shall be advised of this Policy upon undertaking the duties of such
office. This Policy shall be reviewed annually or as requested by the Directors