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In corporations board members are prohibited from what is called "self dealing" to otherwise obtaining a benefit without approval from the board. Self dealing is defined as
"The conduct of fiduciary that consists of taking advantage of his or her position in a transaction and acting for his or her own interests rather than for the interests of the of his or her clients.
If your chair cannot get approval from the club board then she should not participate as a judge.
From a practical perspective as long as your chair has no interest in the outcome, and no interest in the participants of the competition I do not see anything wrong with her participating. The questions amounts to whether she can judge a competition in a fair and unbiased manner.
A conflict of interest requires that there is some advantage to be obtained, or some factor affecting objectivity that exists such that a fair result could not be achieved without suspicion.
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