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Concerns about a conflict of interest


smurphy29

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One of the vice-president's responsibilities in our club according to our by-laws is to oversee inventory including any purchase's or sales of club inventory. He has announced he is starting his own business that sales the same product as the club. He plans to make a motion to buy the inventory from the club that he assessed the value of the inventory(provided his estimate on the value of the club inventory to the rest of the board. I have seen some examples already where he was serving his own business interest as opposed to the clubs. thanks,

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One of the vice-president's responsibilities in our club according to our by-laws is to oversee inventory including any purchase's or sales of club inventory. He has announced he is starting his own business that sales the same product as the club. He plans to make a motion to buy the inventory from the club that he assessed the value of the inventory(provided his estimate on the value of the club inventory to the rest of the board. I have seen some examples already where he was serving his own business interest as opposed to the clubs. thanks,

So, what is your question about Robert's Rules?

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One of the vice-president's responsibilities in our club according to our by-laws is to oversee inventory including any purchase's or sales of club inventory. He has announced he is starting his own business that sales the same product as the club. He plans to make a motion to buy the inventory from the club that he assessed the value of the inventory(provided his estimate on the value of the club inventory to the rest of the board. I have seen some examples already where he was serving his own business interest as opposed to the clubs. thanks,

Under the assumed question "what can we do to prevent this?", you could vote no.

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So, what is your question about Robert's Rules?

One of my questions, can he remain as the VP(club's merchandising chair)for our and make a motion to buy the inventory? Then if the club votes to sell him the inventory can he maintain the VP which I think is a conflict of interest because he has his own business that sells the same product. In RRO simplified and applied it reviews information of the chairman to ruling the motion out of order based on the club's by-laws. I appreciate the guidance because this is all new to me. Thanks,

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One of my questions, can he remain as the VP(club's merchandising chair)for our and make a motion to buy the inventory? Then if the club votes to sell him the inventory can he maintain the VP which I think is a conflict of interest because he has his own business that sells the same product. In RRO simplified and applied it reviews information of the chairman to ruling the motion out of order based on the club's by-laws. I appreciate the guidance because this is all new to me. Thanks,

No rule in RONR suggests that the vice president must resign; however, he should abstain from voting on a motion in which he has a direct, personal interest that it not common with other members. See RONR (10th ed.), p. 394, ll. 15ff.

To alleviate any fear that the vice president may have undervalued the inventory for the sake of buying it from the club at a bargain, the board might want to obtain independent estimates of its worth before selling.

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One of my questions, can he remain as the VP(club's merchandising chair)for our and make a motion to buy the inventory?

Yes. He should, however, abstain from voting on such a motion, although he cannot be compelled to.

In RRO simplified and applied it reviews information of the chairman to ruling the motion out of order based on the club's by-laws.

Well, you might want to read what The Right Book has to say about that. Robert's Rules of Order Simplified and Applied is a third-party knockoff (and if I am correct that it is also known as the Webster's New World edition, it is not a very good one, based on the excerpts I've seen on this forum).

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