PaulA1 (Georgia)
Posts: 1
Posts: 1
Posted:
Sometimes family members buy into the same community. I'm not an experienced board member and was wondering what your thoughts were on family members being on the same board.
For our single family home HOA with over 300 homes in GA, for example, say that Mom owns a house and is on the Board. Then her Son buys a house in the neighborhood and after a few years, there is a vacancy on the board. The bylaws allow for appointments, so the son is appointed. Now there are two family members on the board. This is our current situation
To some members, this seems like a conflict of interest.
Going a step further, what if 2 sons live in the community and there were 3 family members on the board, all separate homeowners, but now they constitute a majority. Does that change your view on a conflict of interest? Our HOA may be facing this at an upcoming annual meeting, where 3 of the 5 board members that would be running for different offices on a 5 person board. They are all good people and I think it would be good to have them serve together, but some of course think otherwise.
An attny friend of mine says that it is fine, if the bylaws do not prohibit it, and the membership votes them in. Since the board is responsible for making decisions in the best interest of homeowners, there would be no conflict if the board does just that. He suggest that if a decision might be seen as favorable to the family members, that one or more of them abstain from voting during board meetings.
This is a great forum! Thanks to all who share their ideas
Paul
For our single family home HOA with over 300 homes in GA, for example, say that Mom owns a house and is on the Board. Then her Son buys a house in the neighborhood and after a few years, there is a vacancy on the board. The bylaws allow for appointments, so the son is appointed. Now there are two family members on the board. This is our current situation
To some members, this seems like a conflict of interest.
Going a step further, what if 2 sons live in the community and there were 3 family members on the board, all separate homeowners, but now they constitute a majority. Does that change your view on a conflict of interest? Our HOA may be facing this at an upcoming annual meeting, where 3 of the 5 board members that would be running for different offices on a 5 person board. They are all good people and I think it would be good to have them serve together, but some of course think otherwise.
An attny friend of mine says that it is fine, if the bylaws do not prohibit it, and the membership votes them in. Since the board is responsible for making decisions in the best interest of homeowners, there would be no conflict if the board does just that. He suggest that if a decision might be seen as favorable to the family members, that one or more of them abstain from voting during board meetings.
This is a great forum! Thanks to all who share their ideas
Paul