Q&A: Conflict of Interest?

Q. Can a husband and wife serve at the same time on a condo board, or is it a conflict of interest? There are three board members in our 13-apartment condo complex. The husband is the president, and the wife is the treasurer.  

                                —Is This Allowed?

A. “The 2015 Legislature passed Senate Bill 174, which was signed by the Governor into law and became effective on October 1, 2015,” says Eva G. Segerblom, a partner at the law firm of Maddox, Segerblom and Canepa in Reno. “This bill amended NRS 116.31034 and places limits on who can run for and serve on an association’s board of directors. Nevada law (through NRS 116.31034) now restricts people who are related by blood, adoption, or marriage, or who are cohabitating from serving together on the association’s board of directors or serving as an officer of an association. NRS 116.31034 now also limits any person who stands to gain any personal profit or compensation of any kind from a matter before the board from running for or being a member of or an officer of an association. NRS 116.31034 now further provides that if a person is not eligible to be a candidate or a member of the board or an officer pursuant to the provisions of NRS 116, the association cannot place their name on the ballot and must prohibit such person from serving on the board or as an officer. 

“There is an exception to this rule: married people, or those residing together or related by blood or adoption, may both be candidates for or members of the association’s board or an officer ONLY if the number of candidates running for the board is less than or equal to the number of open seats. 

“A person owning 75 percent or more of the units in an association may serve on the board with someone they live with, or are related to by blood, adoption or marriage, unless they constitute a majority of the board. 

“Declarant representatives that are appointed to the association’s are not subject to any restrictions. 

“As such, as of October 1, 2015, married board members or those otherwise related or cohabitating as defined in NRS 116.31034 must decide between themselves which person will resign from the board to avoid being in violation of NRS 116.31034. If one of them fails to resign, the association is obligated to prohibit them from serving on the board or as an officer unless the exception above is met.”

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