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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.
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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.
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