Examines a challenge to board decision validity in a 48-unit Leduc condominium after a board member failed to disclose ownership of a landscaping company awarded an $18,000 annual contract.
Faculty of Governance
Conflict of Interest Disclosure and Board Decision-Making
What this course covers
Scenario
In March 2024, the board of a 48-unit condominium corporation in Leduc, Alberta convened to consider bids for the building's grounds-maintenance contract. One board member, who also owned a local landscaping company, put forward a motion to award the $18,000 annual contract to that same company. The board member voted in favour of the motion without disclosing the ownership interest to fellow directors or to the corporation's owners.
Within weeks, a unit owner discovered the connection between the board member and the successful bidder. The owner now challenges the validity of the vote and questions whether the contract can stand. The board faces scrutiny over its conflict-of-interest protocols, the scope of its fiduciary obligations, and the procedural steps required to address a potentially voidable corporate transaction.
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