In the pursuit of association fraud and embezzlement, one of the most important aspects of the major legislation that was adopted earlier this year is the law’s effort to curb conflicts of interest by association board members and officers.
The new law provides that presumptions of conflicts of interest exist in the following circumstances:
- A director, officer or one of their relatives enters into a contract for goods or services with the association.
- A director or officer . . . holds an interest in a corporation, LLC, LLP or other business entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.