Using Association Equipment for Snow Removal Business

Question:

Are employees aloud to run their own side snow removal business (with their own equipment), while also being in charge of road snow removal (with association equipment) favoring their customers while doing road snow removal and sometimes sneaking into their private customers driveways with association equipment. How can these employees be aloud to run their private business while working for the association doing the road snow removal? It’s a huge conflict of interest! Many members have went to the board to express their co cents about this obvious conflict of interest and the board doesn’t care. They also plow every board members driveway, the board doesn’t reach out to the other companies.

– Carina

 

Answer:

Hi Carina,

This situation presents a clear conflict of interest, especially if employees are using association equipment for private gain and favoring their own customers. In California, HOA boards are required to act in good faith and in the best interests of the community.

Allowing employees to operate private snow removal businesses while also being responsible for association snow removal compromises impartiality and fair use of community resources. This practice could violate fiduciary duties and potentially breach HOA governing documents or conflict of interest policies.

Raise your concerns at board meetings. If the board is unresponsive, consider escalating the issue by gathering community support to address the conflict formally. Another alternative is to remove board members who are ineffective at their job.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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