Conflict of Interest

[intrmom]

Our HOA Board of Directors hires a Safety Patrol person yearly to patrol our lake and enforce our rules and regulations.  The current employee is a member of our HOA and has been elected to the Board of Directors.  Our bylaws say "This corporation shall not engage in, nor conduct any activity, for the profit or pecuniary gain of any of it's members."  Since this member is a paid employee should he/she be removed from the Board of Director's?  The same person wants to run to be the Chair of the Safety Committee and would effectively be his/her own boss?  Again, is this not a conflict of interest and should the employee be allowed to chair the committee?

 

[Timothy]

The statement in the bylaws appears to be similar to wording that is in the bylaws of most nonprofit organizations. Many nonprofit organizations have members who are also paid employees. The thing that makes it nonprofit is that members are not collecting money just because they are members. Collecting money in exchange for labor or for goods something totally different.

 

There is nothing in RONR that would prevent a paid employee from being on the Board of Directors. There is nothing in RONR that would prevent an employee who reports to the committee to be the chair of that committee. It may be advisable for this person to let someone else chair the meeting when some topics are discussed, but other than that, I see no problem with it.

[Gary Novosielski]

... pecuniary gain of any of it's members.

 

Does it really say it's instead of its?