Board President Potential Conflict of Interest

According to the By-Laws of the Association, Board Members and Committee Chairs are allowed to operate with a potential conflict of interest – as long as they disclose it in writing.  Some boards also ask directors to excuse themselves from discussions where there might be a potential conflict of interest – or the appearance of one, but our By-Laws do not require it.

Many residents are unaware that the former President of the Association performs services for HOAMCO including processing of legal documents at Magistrate Court for this and several other associations managed by HOAMCO.  No one is trying to accuse the President of doing anything illegal.  When questioned in the regular session of the October 2013 board meeting, the President explained that the services for RV South are unpaid with reimbursement only for copy fees and fuel.  There was also a question regarding whether directors on the BOD who have a potential conflict of interest should remove themselves from discussing contracts where they have an existing business relationship.  These questions were part of a ByLaws interpretation meeting held with the Association Legal Counsel in October 2013.  Association Legal Counsel advised that excusing oneself from discussions was not mandatory, but that written disclosure is required per Association By-Laws.

To date, the President has not provided written disclosure to the Association or BOD.  This discussion was also removed from the October 2013 minutes against the objections of two Directors and the altered minutes were published on the Association website without board approval (see Missing Minutes).

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