Conflict of interest????

Started by MindyD • 6 replies • 1216 views

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MindyD
Posts: 47

Posted:

What would you say if the Statuatory Agent is the same guy as the owner of the Management Company. And
Husband and wife team that work at the Management company and the husband is on the board of the law firm that the management company uses ????????????
Should I worry about any of this ?

SusanW1
Posts: 5,197

Posted:

Only if they stand to make money off their "connections."

Doesn't sound like it.

RobertG12
Posts: 159

Posted:

Check out the Arizona law. Quirky as it is, it does cover conflict of interest. All anyone has to do is state they have a conflict. Then they can do whatever they want. There is nothing that isn't allowed, you just have to make a declaration of the conflict. To me, this doesn't sound like much of a solution, but that is the way it is.

MaryA1
Posts: 6,993

Posted:

Mindy,

I see no reason for concern. Here is what the purpose of a statutory agent is:

" The purpose of an Arizona statutory agent is to give notice to the public of a person or entity authorized by the company that can be served with legal documents as the agent of the company. The statutory agent is the person or entity that can be served with a summons and complaint filed in a lawsuit."

It's not unusual for the assn's PM or attorney to be the designated statutory agent.

I would suggest you read the applicable statute on conflict of interest: ARS 10-3864. Monetary gain is usually one of the key elements of a conflict of interest.

BeaF4
Posts: 2

Posted:

I am sorry I don't have an answer for MindyD, but how about this: Do you think a real estate agent on the BOD is a conflict of interest?

MicheleD
Posts: 4,427

Posted:

No, not inherently a conflict of interest.

Our very first board president (after turnover and transition) was a real estate agent.

He was president for our first 3 years. He would have been on the board longer but he eventually moved out of the subdivision.

MaryA1
Posts: 6,993

Posted:

Bea,

The only way a board member R.E. agent would have a conflict of interest is if she got the board to require all members to hire her as their R.E. agent if they wish to sell their home. Then her board position would result in a monetary gain for her. "Monetary gain" is usually a key ingredient to "conflict of interest". I believe most people don't understand the term but it sounds good to use it as a reason when you think somebody is doing something wrong.

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