CONFLICT POLICY

The following policy was adopted by the Board of Directors of Forest Park Master Association (“the Association”) pursuant to Colorado law at a regular meeting of the Board. 

RECITALS: 

A.            Pursuant to Colorado Revised Statute 38-33.3-209.5(1)(b)(II), the Association is required to adopt a policy concerning how to handle conflicts of interest involving Board Members. 

B.            The executive Board has reviewed subsection 310.5 of the Colorado Common Interest Ownership Act and believes that subsection establishes a good analysis of possible conflicts of interest involving Board Members. 

C.            The executive Board believes restitution of actual damages is an adequate remedy for violations of the Association’s conflict of interest policy. 

THEREFORE, IT IS RESOLVED: 

In the event any member of the executive board or a committee thereof (“Interested Person”), the Interested Person’s child, grandchild, spouse, sibling, parent, grandparent, company, partner, or business (“Related Parties”) has/have a Financial Interest, as defined below, in a decision or other action for the Board’s consideration, the Interested Person must declare the conflict and describe with reasonable particularity the nature of the conflict.  The declaration of conflict must be made in a portion of the board meeting open to the members of the Association prior to any discussion or action being taken.

Financial Interest shall arise if the Interested Person or Related Parties have:  a) an ownership or investment interest in any entity with which the Association has, or contemplates a transaction or agreement; b) a compensation arrangement with the Association or with any entity or individual with which the Association has a transaction or arrangement; or, c) a potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Association is negotiating a transaction or agreement.

Compensation shall include direct and indirect remuneration as well as gifts or favors even if insubstantial.

Although the Member of the Board, after declaring the conflict, may participate in the discussion at the meeting, that member may not vote on that issue. 

A contract entered into, or action taken, in violation of this policy or Colorado Revised Statute 38-33.3-310.5 shall be void and unenforceable.  Further, the Association may seek restitution for damages resulting from the member, or members, who failed to comply with this policy or Colorado Revised Statute 38-33.3-310.5, including all costs and attorney fees incurred in obtaining said restitution. 

Policy adopted this _____ day of ______________, 200__ by Resolution of the Board of Directors of Forest Park Master Association. 

_________________________________

By _______________________________

Its _______________________________