I Believe a Board Member Has a Conflict of Interest. Can This Member Be Removed?

“Conflict of interest” means an issue in which a director has a direct personal or financial interest not common to other members of the association. HRS § 514B–125(a). A director shall not vote at any board meeting on any issue in which the director has a conflict of interest. A director who has a conflict of interest on any issue before the board shall declare the nature of the conflict before any vote on the issue, and the minutes of the meeting shall record that a disclosure was made.

If you believe a board member has a conflict of interest that prevents this member from representing the interests of the association, you may attempt removal of the board member from the board pursuant to HRS § 514B–106(f). If this is not successful, you may submit the dispute to mediation or arbitration or hire a private attorney. Keep in mind that an important tenet of condominium law is “majority rule”. A majority of owners must support efforts at removal and replacement of a board member in accordance with any provisions in your bylaws regarding the removal and replacement of directors. If removal and replacement is to occur at a special meeting, then the requirements of HRS § 514B-121(b) must also be met.

Revised 8/16/2018