Strata Management Licensing Practice Exam · Question
A strata council member owns a landscaping company and proposes to contract their company for the strata's gardening services. What is the most appropriate action for this council member?
Council members must declare any conflict of interest, such as benefiting from a contract with the strata, and must recuse themselves from discussions and votin
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Question: A strata council member owns a landscaping company and proposes to contract their company for the strata's gardening services. What is the most appropriate action for this council member?
Answer options:
- To sign the contract on behalf of the strata, as they are a council member. ✅ To fully disclose their conflict of interest and recuse themselves from any discussions or voting on the matter.
- To not mention their ownership and proceed with the contract.
- To offer their services at a discounted rate to avoid conflict.
Correct answer: To fully disclose their conflict of interest and recuse themselves from any discussions or voting on the matter.
Explanation: Council members must declare any conflict of interest, such as benefiting from a contract with the strata, and must recuse themselves from discussions and voting related to that matter to uphold fiduciary duties and prevent impropriety.
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