Is This a Conflict?

Is This a Conflict?

The board member in a homeowners association just hired the same pool company that is used by the association.  Conflict? Not necessarily.  There are provisions within the Homeowners Association Act which prohibit contracts between an association and a company when one of the board members from the association has a financial interest in the subject company.  There are also restrictions contained within the Homeowners Association Act which prohibit board members from receiving “kickbacks” for awarding contracts on behalf of the association.  That being said, there is no statutory prohibition which would prevent a board member from retaining, for their individual swimming pool, the same pool company which is under contract to clean the community swimming pool, as long as the subject board member is paying the going rate for the service and not receiving a quid pro quo discount as a result of their position on the board.