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CalAttorney2, Attorney
Category: Business Law
Satisfied Customers: 10244
Experience:  I am a businesses law attorney, with experience advising and representing owners and investors.
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I own a screenprinting business in Canton,Il.I have provided

Customer Question

I own a screenprinting business in Canton,Il.I have provided approximately $200,000 in shirt sales to a national organization(united states tumbling association) each year for the past (30)years.Recently,a new executive board member is trying to get the board to replace me with a new supplier.There are (7) members on the executive board and would (4) votes against me to change suppliers.We have the support of at least (4) members. the problem is ,some board members are contending (1) of our supporters has a conflict of interest because of her association with my family.I have known her for (30) years,my grandaughter is a member of her competitive tumbling team,I consider her a friend even though we do not socialize together.I have the same friendship and business relationship with other board members for (30)years.Is there a conflict of interest?
Submitted: 2 years ago.
Category: Business Law
Expert:  CalAttorney2 replied 2 years ago.
This is not a conflict of interest in the sense that it creates a breach of fiduciary duty for the board member - the board member is not gaining financially from awarding you the contract, their immediate family is not benefiting from the transaction, the fact that a distant relative/friend may benefit from a transaction with the organization they are a board member of does not create a conflict of interest sufficient to justify them removing themselves from this decision.For comparison, if your spouse were a member of the board, they would have a financial interest in the contract and it would be appropriate for them to recuse themselves from the vote.