Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Board members have a fiduciary duty not to engage in self-dealing. That would include seeking contracts with a contractor to whom they are related or would derive some benefit.
Board members who breach their fiduciary obligation could face a civil suit.
So, board members cannot seek or approve contracts with whom their is a conflict of interest.
Please let me know if you have any questions.
Please let me know if you need any other assistance. Thank you for accepting my answer and ensuring that I receive credit for assisting you.Thank you again
Well in my situation I have a maintenance contract with an association that is due to end in June. I had an subcontractor quit working for my company and started working with another contractor who has now placed a bid for my same contract. Is this a conflict of interest since they have agreed to negotiate with the new contractor and have not met with me
One sconed please
A subcontractor working with an alternative contractor for the same customer does not create a conflict of interest with a board.
A board would be conflicted if a member of the board had some relation or financial interest in a particular contractor getting a job.
Is there anything else?
Please let me know if you have any other questions.Please be so kind to leave me a positive feedback rating, if you have a few seconds. You will be prompted for feedback after pressing the accept or submit button. You can still continue to post follow-up questions even after the accept button is pressed.Thank you so much
You can always post a question later if you think of anything. It seems you are asking whether a subcontractor would be prohibited from leaving one general contractor and working for another on the same bid project.
The only barrier would be present if the subcontractor had entered into a non-compete with the previous general contractor.
Well actually I was thinking that the board of directors was wrong for negotiating with another contractor who is using the same subcontractor I was using while I am still in a contract with them. This particular subcontractor left me with a huge debt because he didn't have insurance. I will accept you answer.
A board is not conflicted however, they may consider whether they want to utilize service providers with a poor work history.
To accept, you press the accept or submit button.
Thank you again