Q I am the president of a co-op board in Gramercy Park. One of our directors has recently become a licensed salesperson. When announcing this to the board, he indicated that he would recuse himself going forward from interviewing any potential buyers.
At the time, this seemed adequate to ward off the semblance of any conflict of interest. Recently, however, the issue has become a bit more complicated.
The director has done a mailing to all shareholders announcing his association with a particular brokerage firm. This has raised more than a few eyebrows in the building. For starters, the director is also the treasurer. Consequently, he is in a position to influence the budget and ultimately maintenance. Further, he is an aggressive proponent of refinancing our mortgage.
I personally am in a difficult position, as the director in question is a close personal friend. However, I have an obligation to the shareholders to lead a board without even the slightest hint of impropriety. Can you offer some advice?
—Concerned Board President