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Michael C.
Conflict of Interest?
Mon Mar 22, 2010 03:14

We have a board member who has brought a lawsuit against our coop. Is it ethical that this person remain on the board of directors? Can this be considered a conflict of interest? Thank you.

    • Conflict Anonymous, Wed Mar 24 08:10
      I believe this happened on our Board last year. The Board voted to create an "executive committee" who had the power to make decisions. This way the board member with the seemingly conflict was... more
      • Re: Conflict Anonymous, Thu Mar 25 15:33
        That a board member thinks it is ok to 'represent myself as a shareholder in a lawsuit against the building and there is no conflict of interest' reminds me not to take seriously everything I read... more
        • Conflict Anonymous, Thu Mar 25 15:47
          Every Board Member is a Shareholder first. Just because you are on the Board does not mean you lose your rights as a resident? That's kind of absurd. Also, starting a Board within a Board, that's... more
      • Conflict Annonymous, Thu Mar 25 11:15
        Our Board already did this and excluded 2 Board Members because they had a difference of opinion. NO CHECKS AND BALANCES. That's too bad that people act like that, kind of a dictatorship.
    • Re: Conflict of interest CDT, Wed Mar 24 07:09
      At a minimum, the board member must refrain from participating in the discussion of any matter even remotely connected to the lawsuit, and should not be present during such discussions. Furthermore,... more
    • Conflict of Interest Judith F, Tue Mar 23 14:29
      This lawsuit was brought as a shareholder NOT a Board Member. There is absolutely NO conflict of interest.
      • Conflict of Interest Judith F, Wed Mar 24 08:13
        To all who answered. First of all I am the one who brought the ACTION against the corporation for not protecting my rights as a resident, which I might add I am entitled todo whether a Board Member... more
        • prejudicial board Anonymous, Thu Mar 25 21:22
          i believe it, lots of board members do not know their responsibilities to the shareholders. if i thought i wasn't going to be throwing money away on attorneys, i would do the same. there are a couple ... more
      • conflict of interest RLM, Wed Mar 24 02:38
        Here's my take - not a legal opinion, by any stretch. Any time a board member/shareholder may benefit financially, there is an automatic conflict of interest, since the board member's fiduciary... more
        • Conflict Anonymous, Fri Mar 26 09:04
          There is no financial gain to the action that was brought, it's for RELIEF, (injunctive relief). When people don't know the full story or Action, they just summize.
    • Conflict of interest AdC, Mon Mar 22 14:08
      Not necessarily. The dual role of BM and shareholder may bring conflicting issues that may not mean that the person needs to step down. Don't know the circumstances that led to such a lawsuit. The... more
    • Re: Conflict of Interest? NYC RM, Mon Mar 22 10:36
      I would think so, being that the board would seek the advice from the building counsel, he as a board memeber also would have access to this. Check your bylaws, in all the coops/condos, I've worked... more
      • Conflict of Interest Sam, Wed Jun 30 07:07
        Our board president's son owns a construction company that is frequently used at our building. Any thoughts??
        • Conflict of Interest JB, Wed Jun 30 08:39
          Bright-line conflict of interest.
          • addendum JB, Wed Jun 30 08:40
            My comment a moment ago refers to the board member whose son is involved with a construction company that does work on the board member's building, not the lawsuit issue, which I didn't see... more
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