Conflict of Interest

BCL SEC. 713

No contract or other transaction between a corporation and one or more of its directors, or between a corporation and any other corporation, firm, association or other entity in which one or more of its directors are directors or officers, or have a substantial financial interest,shall be either void or voidable for this reason alone, or by reason alone that such director or directors are present at the meeting of the board, or of a committee thereof, which approves such contract or transaction, or that his or their votes are counted for such purpose.

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"Directors and managers of cooperatives and condominiums are fiduciaries, which means they have the responsibility to protect the values of their property and the investments made by cooperative apartment shareholders and condominium unit-owners. They can’t engage in transactions that benefit themselves personally at the expense of their shareholder or unitowner constituents, and if this comes up, a board must know how to handle it. Boards must report to shareholders or unit-owners all transactions in which a director or manager was an interested party."

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