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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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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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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.