Board Members Employed by Property Manager

If this employment is public knowledge (as to your Members), I don't see any problems with either employment nor holding an elected BOD position.

I agree it's not a good idea but like John noted as long as its public knowledge an is not specifically prohibited in the CC&R's it is allowable. Our section allowing it is buried in the Articles of Incorporation, probably put there to protect the people the Declarant appointed to the BOD but it is still allowable.

A Trustee or officer of the corporation shall not be disqualified by his office from dealing or contacting with the corporation as a vendor, purchaser, employee, agent or otherwise; nor shall any transaction, contract or act of the corporation be void or voidable or in any way affected or invalidated by reason of the fact that any director or officer of any firm of which such Trustee or officer is a member, or any corporation of which such Trustee or officer is a shareholder, director or officer, is in any way interested in such transaction, contract or act; provided, however, that the fact that such director, officer, firm or corporation is so interested be so disclosed to or known by the Board of Trustees or such members thereof as shall be present at the meeting of said Board at which action is taken upon such matters. No Trustee or officer shall be accountable or responsible to the corporation for or in respect to any such transaction, contract, or act or for any gains or profits realized by him or by any organization affiliated with him as a result of such transaction, contract or act. Any such Trustee or officer may be counted in determining the existence of a quorum at any meeting of the Board of Trustees of the corporation which shall authorize or take action in respect of any such contract, transaction, or act, and may vote to authorize, ratify or approve any such contract, transaction or act, with like force and effect as if he or any firm of which he is a member or a
corporation of which he is a shareholder, officer or director were not interested in such transaction, contract or act.

Jo,

What is this board member's position at the property mgmt co.? Is he/she assigned to your HOA? If "no"; there's definitely no problem; however, if "yes", there "could" be a problem. Depending upon what the conflict of interest statutes for your state say, there may or may not be a violation. Generally speaking a conflict of interest means the person stands to gain monetarily from the association and by monetarily that does not include just a paycheck. But, usually if the conflict is declared to the board and the board votes to accept it then a conflict of interest does not occur. Personally, I don't think it's a good idea for a board member to work for the assn whether they are an employee of the assn or an employee of a contractor of the assn. I think it just allows for too much speculation on the part of the members.