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Is It Legal for Managing Agent to Sit on the BoardNov 15, 2018

Our Board has picked one of its own members to be the Management company of our Co-Op. is that legal? Also the Management Company chooses the Independent Auditor. That can’t be ok

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MA as a board member - Steven424 Nov 17, 2018

It sounds like you have the the potential for a conflict of interest, but the transparency you described probably minimizes legal problems with the setup. A way of getting around the auditor issue is to have the board member/MA *propose* the auditor, and then the rest of the board reviews and votes to approve or reject. That way the auditor selection is owned by the entire board and not a single board member.

I am not a lawyer.

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