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WH1
Posts: 11
Posted:
Our VP had a stack of brochures from his job infront of him on the conference table at a recent board meeting. On top was a warranty bearing his name and his company name. I noticed that he did not have the brochures when we left the meeting and he must have walked over to the back of our management office to leave it at one of the manager's desks. This is a new management company and before we had contracted with the company, this VP even made a public disclosure in email to the whole board that he had done a job with one of the hoas that our new management company handles, and that it was a one time thing.
How would you approach the issue?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Don't worry about it until any job is bid on. It should come before the board for approval.
At that time, he should recluse himself from voting on any contracts.

What exactly would his company be bidding on?
WH1
Posts: 11
Posted:
Susan,it's not for our association to bid on. He's bringing work for othe hoas that our new management company handles. Wouldn't this still be conflict of interest?
Thanks.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Not any more that any other member who drops off business cards or other information to your MC.

Only if it involves YOUR HOA would it be a conflict of interest, IMHO.
WH1
Posts: 11
Posted:
Sorry, missed part two of your email .. he works as a technician for a security camera firm.
MichaelK11 (Texas)
Posts: 432
Posted:
Quote:
Posted By WH1 on 10/16/2009 4:47 AM
Susan,it's not for our association to bid on. He's bringing work for othe hoas that our new management company handles. Wouldn't this still be conflict of interest?
As Susan said, if he's not part of the body making the decision (the MC or your HOA's BoD), then there's no CoI. He's just networking.

If he's successful (if he does more work with this MC), then he could be viewed as having a financial interest in their success or even a possible quid-pro-quo intention. When disputes or decisions arise in your BoD regarding this MC, then the BoD may consider recusing this Director/Officer from those decisions.
MaryA1 (Arizona)
Posts: 7,043
Posted:
WH,

First of all, I don't know that you have enough info to make any claims. Frankly, your comments are full of suppositions and border on just being nosy.

Secondly, as Susan said, there is no conflict of interest if the matter doesn't concern your HOA. The VP is free to consult with the mgmt co or any other contractor, even those doing business with the HOA, on personal business issues. Only if those matters involve a contract with the HOA could there be a potential conflict of interest. Even if there is a conflict of interest, if the guidelines of your gov docs and/or state law are followed then there is nothing to worry about.

How would I approach the issue? I'd keep my nose out of it!!
WH1
Posts: 11
Posted:
I wouldn't be asking for answers here if I had more than assumptions. Not being nosey either because the brochures were on the table and for a board member who had thrown human feces on another neighbor's door and was arrested by the cops for it, I wouldn't be surprised if this board member was doing the conflict thing blatantly.
WH1
Posts: 11
Posted:
Mary,
I got the answers that I need from SusanW and MichaelK. Thanks for your time anyway.
MichaelK11 (Texas)
Posts: 432
Posted:
Quote:
Posted By WH1 on 10/16/2009 9:44 AM
I got the answers that I need from SusanW and MichaelK. Thanks for your time anyway.
Obviously there's more going on than any of us know about. We should all add caveats about not knowing the real-world details of anyone's situation and seek legal advice. I routinely forget to state those.

Nonetheless, I would strongly advise taking all advice seriously, Mary's included. It's easy to get tunnel vision when you are directly involved and motivated by relationships and attitudes -- that happens to everyone and there's no way around it. One of the advantages of this forum is getting a sanity check from people who are distant from your situation and relatively objective.
MaryA1 (Arizona)
Posts: 7,043
Posted:
WH,

In the future, when you've gotten all the answers you need, I suggest you let us know so we won't waste our time responding.
MaryA1 (Arizona)
Posts: 7,043
Posted:
WH,

You said: "I wouldn't be asking for answers here if I had more than assumptions." Well that says it all and nicely verifies my assumption that your message was full of suppositions. If you want to prove a conflict of interest, I'm sorry, but you've got to have hard facts and we can't help you with that!
KirkW1 (Texas)
Posts: 1,665
Posted:
I would guess that the VP is now using his association with the management company to promote his business to other HOAs. Now many would say that this is problematic, but it is done all the time.

The fact is that business people use their contacts to help their business all the time and indeed must do so. And there is a good chance that he mentioned what he did and the was asked for more information. And now he may get more jobs from other HOAs.

This is something that he should disclose in the event he does in fact get more jobs. And he may need to recuse himself from discussion if the issue of management company replacement comes up again.
MaryA1 (Arizona)
Posts: 7,043
Posted:
He's a businessman and he doesn't have to disclose his business dealings with the board of his HOA even if he is a member of that BOD, IF those business dealings have nothing to do with his HOA. I don't know that he even must recuse himself from discussion if replacement of the mgmt co comes up. If all the other board members know about his relationship with the mgmt co and are OK with it, then he doesn't have to recuse himself from any discussion or vote. A conflict of interest generally occurs if the person with the conflict stands to reap a monetary gain.

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