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How to apply the rules against Conflicts of Interest
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Premise:
X is a unit owner and a board member of condominium corporation ABC. Board members are voting to select vendor V1 or V2 as ABC’s designated supplier. If X is an owner of V1, then X’s interest in V1 conflicts with his duty to act in the best interests of ABC and X is barred from voting.
Proposed application:
All unit owners are voting in respect of their associated units on a motion to remove X from the board. If X votes, his personal interest in remaining on the board conflicts with his duty to act in ABC’s best interests. This conflict bars X’s right to vote for himself.
Extension:
Going beyond the premise above, if X owns three condo units, X’s normal right to one vote in respect of each unit as specified in CPR Schedule 4, S 7(2) is similarly barred by the conflict as in the proposed application.
Question:
Is X’s right to one vote for himself in respect of each unit appropriately barred by the conflicts of interest rule?