STATE OF TEXAS §
§
COUNTY OF HARRIS §
Pursuant to the Declaration of Protective Covenants of Lakeville Community Association, Inc.(referrcd to as
“Association”), the Association, a Texas non-profit corporation, consents to the adoption of the following
resolution:
RE: Conflict of Interest Policy
WHEREAS:
1. Section 209.0052 of the Texas Property Code adds limitations relating to an association contracting
services from a board member, a board member`s Relative, a board member`s company, or a board
member`s Relative’s company.
2. The Association’s Board of Directors (the “Board”) desires to establish a policy consistent with
Section 209.0052.
BE IT RESOLVED THAT contracts causing a conflict of interest with a current Director will comply
with the following:
1. For purposes of this policy, a Relative is a person related to a current Director within the third
degree by consanguinity or affinity. For purposes of this policy, Owned means that a person owns
fitty-one percent (51%) or more.
2. The Association may enter into a contract with a current Director, a Relative of a current
Director, a company Owned by a current Director, or a company Owned by a current Director’s Relative
or any benefit above and beyond any benefit received by the entire membership of the community if:
a. The Association has received at least two other competitive bids for the contract from
persons not associated with the Director, Relative, or company (if reasonably available);
b. The applicable Director is not given access to the other bids, does not participate in any
Board’s discussion regarding the contract, and does not vote on the award of the contract;
c. The relationship concerning the applicable Director is disclosed to or known by the Board
and the Board, in good faith and with ordinary care, authorizes the contract by affirmative
vote of the majority of the Directors who do not have a conflict of interest; and
d. The Board certifies by a resolution that the requirements of Section 209.0052 have been met.
3. A conflict of interest shall mean, any contract, transaction, or other action taken in the course of
Association business that will benefit a current Director, a Relative of a current Director, a
company Owned by a current Director, or a company Owned by a current Director’s Relative, or any
benefit above and beyond any benefit received by the entire membership of the community.
4. The interest can be either direct or indirect.
5. The benefit is not limited to strictly monetary rewards (e.g. access to information for private
gain).
6. If a conflict of interest is discovered after a decision has been made, the pertinent Director must
notify the rest of the Board as soon as he or she is aware of a conflict.
7. The other board members must reexamine the issues with the new information in accordance with
this policy.
8. Contracts entered into in violation of this policy are void and unenforceable.
9. A current Director with a conflict of interest will still be counted in determining whether a quorum
exists.
10. The Board certifies through this resolution that the requirements of Section 209.0052 have been
met.
EFFECTIVE DATE: 11/11/2014
Authorized Board Member Signature:
% Date:
3-3-15
==============================================================================================================
For Certification, signature, and notary please refer to the PDF Page
