Q&A: Conflict of Interest

Red wooden cube with the up arrow among the cubes with down arrows.

Q. We have a member of the board of trustees of our co-op village who is a licensed realtor. Is he legally restricted from listing or selling units that are owned by the village, due to a conflict of interest? Also, is a board legally restricted from nepotism? Our board has hired the sister of one of the trustees as an office worker.

                                          —Suspicious

A. “Co-ops are governed by a proprietary lease and bylaws,” says Princeton-based attorney Elysa Bergenfeld, partner in the Community Association Practice Group of New Jersey law firm Ansell Grimm & Aaron PC. “Unless there are restrictions in either, such is likely not prohibited. Generally, a co-op can also hire a relative of a board member so long as the relationship has been disclosed and the hiring of the position/person was done properly otherwise.” 

Related Articles

A person is using a leaf blower to clean up a sidewalk in the city. Colorful leaves are swirling around.

Q&A: Contract Transparency

Q&A: Contract Transparency

Data analysis science and big data with AI technology. Analyst or Scientist uses a computer and dashboard for analysis of information on complex data sets on computer. Insights development engineer

Clear Communication

From Digital Portals to Personal Connections

Washington DC, USA - 2 May 2024: Front exterior view of the entrance to the Department of the Treasury building in Washington DC

More on the Corporate Transparency Act

The Law of Unintended Consequences