Conflict of Interest
A long-time member of the board and the largest donor, John Woods, reached out to the Executive Director of Children’s Assistance Services (CAS) to contact Marvin Jones to start on the repair project. John Woods’ wife’s brother owns 20% of Marvin Jones’ business. Since Woods is a member of the board and holds leverage due to being the largest donor, this situation is deemed as a conflict of interest (Statues p.1019, Article III, Para 2). Moreover, there was no disclosing of potential conflict of interest to other board members, neither orally nor in writing, as it was happening (Statues p. 1020, Article IV, § 1). Therefore, the executive director violated the policy of conflict of interest, and should have …show more content…
199, § 315) and actively participate in the organization’s activities and operations through regular attendance of the board meetings, in which they carefully review materials (Text, p. 136, Para. 3). Unfortunately, the board members of CAS did not properly adhere to their responsibilities. Several board members neglected to vote on the issue concerning operating beyond the boundaries of the town of Mandel. Assuming the board members had fulfilled their duty of care, they would have an appropriate depiction of whether to move forward with operations outside of Mandel Township or not. Therefore, the board members also violated the duty of care and the duty of …show more content…
Actions by the Board to Resolve Listed Legal Issues
➢ Board members need to keep in mind their policy concerning conflict of interest. Each board member needs to review the policy and sign a document showing that they will follow it.
➢ Board members need to formally vote on whether they want to change CAS’s mission to accommodate the need to provide services outside the borders of Mandel Township.
➢ The Executive Director has violated the following policies: conflict of interest, duty of loyalty, and duty of care. Her actions could have brought about potentially negative effects on CAS. Therefore, she can be removed by a vote of majority of the entire board (Statues, p. 1010, Article III, Section 3).
➢ The Executive Director should have been transparent in all her findings and research and should have relayed found information to the board as it was happening.
➢ Board members need to have a fixed schedule of regular meetings to communicate and discuss issues surrounding CAS. They also need to vote in person or while simultaneously on a phone or video call, assuming they are not operating in