Management Company Conflict of Interest Questioned

Q: Can the president of a condominium association also be an owner of the property management company that represents the association or is that a conflict of interest? (K.R., via e-mail) A: The facts you describe create a rebuttable presumption of a conflict of interest, because the president of the association, who is presumably also a board member, owns an interest in a business that does business with the association. Section 718.3027 of the Florida Condominium Act prohibits an association from entering into a contract with a vendor when the contract poses a conflict of interest, unless the director or officer with the conflict follows the required disclosure procedures. If a director or officer proposes to engage in an activity that is a conflict of interest, the proposed activity must be listed on, and all contracts and transactional documents related to the proposed activity must be attached to, the agenda for the meeting at which the board will be voting on the matter.