pmweeks - I know of a coop that has a realty agent on its board. Their only restriction on him is that he can't review or vote on a sale package for which he is the buyer's or seller's agent. I know of two other coops where the realty agent on their board can't review or vote on any sale packages at all.

Some coops think a realty agent on the board would bring a professional eye to the table and know what makes for a desirable buyer. That assumes that the agent is a good one. Other coops think a realty agent who is also a shareholder might, even subconsciously, reject a sale package if s/he doesn't like the seller or has another agenda that might reflect bias on sales. A personal agenda of a realty agent might also affect sublets.

Not giving my opinion here, just expressing thoughts of coops I know who have a realty agent on their board.

When we updated our By-Laws last year, our lawyer suggested that we added a new section on Conflicts of Interest. Here's the part about brokers:

"Real estate brokers or salespersons, who are members of the Board, shall refrain from engaging in selling apartments in the building or participating in such sales, either directly or indirectly, as listing broker, co-broker or otherwise as an economic participant in such sales."

And there's a catch-all at the end for recusing Board members who refuse to recuse themselves:

"The Board of Directors may, by majority vote, require that a director be recused from participating in any discussion or voting on any matter, when the Board determines that there is a substantial financial conflict between the interests of the director and the interests of the Corporation or that such a conflict of interest reasonably appears to exist."