Compensation for services provided by board member

[GeorgeP]

There is nothing in our Bylaws to cover this.  We have a member performing services for our building, and is considered a 1099 independent contractor.   Would this person be eligible for a Board of Directors position and continue his services duties?   

[Joshua Katz]

So far as RONR is concerned, yes. Any legal issues are beyond the scope of the forum.

[Guest Puzzling]

Ronr only says  that he or she should refrain from voting on matters in which he has a personal or financial interest different from other (board)members. 

In RONR it is not forbidden (there is no RONR police, and voting is a fundamental right) but only strongly suggested.

Depending on the kind of organization and state other laws (that have priority over RONR) may give more regulations 

[Richard Brown]

On 3/6/2021 at 10:20 AM, GeorgeP said:

There is nothing in our Bylaws to cover this.  We have a member performing services for our building, and is considered a 1099 independent contractor.   Would this person be eligible for a Board of Directors position and continue his services duties?   

Nothing in RONR prohibits such a member from serving on the Board of Directors or in any other position. However, he should abstain from voting on any motions dealing with his own employment with the society, but he cannot be compelled to abstain. Section 45:4 (RONR 12th ed.).

[Gary Novosielski]

On 3/6/2021 at 11:20 AM, GeorgeP said:

There is nothing in our Bylaws to cover this.  We have a member performing services for our building, and is considered a 1099 independent contractor.   Would this person be eligible for a Board of Directors position and continue his services duties?   

No rule in RONR prohibits it, but if members are concerned about this apparent conflict of interest, they may wish to vote for somebody else.