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conflict of interest on the board


Guest Renee

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Speaking of conflict of interest....

what does the forum think of this.

Situation:

A non-profit Arts org owns 150 + or - acres in the Mountains. There is a major gas/oil exploration effort in the area.

A major landowner, who owns property adjacent to the organization and is acting as a broker for gas/oil leases, makes a proposal to the Executive Committee to buy 75 acres of the non-profit's land and 150 acres of mineral rights from the org. The EC brings it to the board and it is voted down.

One month later, the same major landowner was appointed to a full term on the board by motion of the org Pres and approved by board members (not in compliance with the by-laws as the by-laws provide that new directors are elected by the membership and unexpired seats are appointed).

A conflict of interest as well as a violation of By-laws?

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Speaking of conflict of interest....

what does the forum think of this.

Situation:

A non-profit Arts org owns 150 + or - acres in the Mountains. There is a major gas/oil exploration effort in the area.

A major landowner, who owns property adjacent to the organization and is acting as a broker for gas/oil leases, makes a proposal to the Executive Committee to buy 75 acres of the non-profit's land and 150 acres of mineral rights from the org. The EC brings it to the board and it is voted down.

One month later, the same major landowner was appointed to a full term on the board by motion of the org Pres and approved by board members (not in compliance with the by-laws as the by-laws provide that new directors are elected by the membership and unexpired seats are appointed).

A conflict of interest as well as a violation of By-laws?

Yes, it's a violation of the bylaws, if what you post is accurate, and that makes it null and void.

As for a conflict of interest, RONR doesn't speak of conflicts of interest. It speaks of when members shouldn't vote and when the presiding officer should turn the chair over to another. It does not dictate who should or should not be a member, of a society or a board.

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Where do you see the conflict of interest?

Just because a person makes an offer to a given board, that fact by itself does not disqualify this person from sitting on that board.

Perhaps... To me, it gives the appearance of interest in the property rather than the organization. The org has been in existance for 35+ years. This is ths first time interest has been shown in the org. by the adjacent landowner.

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Perhaps... To me, it gives the appearance of interest in the property rather than the organization. The org has been in existance for 35+ years. This is ths first time interest has been shown in the org. by the adjacent landowner.

Nothing in RONR will support your claim that he shouldn't be a member or an officer of the organization. It's up to the organization to decide.

However, RONR does say that he should not vote on the question of the organization purchasing property that he solely owns.

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