201: Conflict of Interest

A policy statement for N.M.L.A. Executive Board members.

In their dealings with the business or property of the Association, members of the Board may not use their relation to the Association for their own personal gain.

Principles

The following five principles will serve as guidelines for Board members:

1. Members of the Board shall maintain the highest standards of business ethics in transactions with the Association.

2. Members of the Board are expected to perform their duties faithfully and efficiently and never give rise to suspicion of improper conflict within the Association.

3. Members of the Board shall not accept any favor or gratuity from any person, firm or which is engaged in or attempting to engage in business transactions with the association, which might affect the Board members’ judgement in the impartial performance of his duties.

4. Board members are not privileged to use inside information for their own personal advantage or fail to disclose relevant information or misrepresent facts to the Association’s members.

5. Full disclosure by a member of any potential conflict between his or her personal interest and the interest of the Association is required by the standard of good faith.

Procedure

1. When any such interest becomes relevant to any subject requiring action by the Executive Board or any of its committees, the Board member having a conflict shall call it to the attention of the Board or committee, and the Board member shall not vote on the subject in which the member has a conflict of interest, shall not use personal influence, and, in those cases where a quorum of the meeting called for the purpose of voting on the subject has not yet been established, the Board member shall not be counted.

2. If excluded from voting because of a conflict of interest, a Board member will be required to state briefly the nature of the conflict, and may be requested to answer pertinent questions of other Board members when that Board member’s knowledge of the subject will assist the Board or any of its committees. The Board may request that a Board member thus excluded from voting on a subject leave the meeting temporarily while the subject is being debated and voted upon.

3. The minutes of the meeting shall reflect that a disclosure was made, that the Board member
who stated a conflict of interest did abstain from voting, and, in those cases where a quorum was not already established, that the Board member was not counted in determining the quorum.

Adopted January 1981