Re: [RC] AERC By-law revisions

Tue, 16 Apr 2002 09:08:07 -0700

Hieid I think the answerr is in the pharse "material finanicial interest" - the meaning of "material" in this pharse is "Being both relevant and consequential." Lets take an example of an issue which might come before the board. Say a rule which states every ride will have at least two vets, one of which is licensed to treat in the state of the ride, a rule that states every ride will have at least two vet checks in the 50 mile distance. This could have the effect of requiring more vets for rides.  No vet I have ever talked to has told me vetting endurance rides was a money making proposition. In fact most will tell you that the money from the time off from their practice is not covered by the fees they they make vetting rides. Then there is the issue of time away from family, etc. They do it because the love the sport, not to line their pockets with green. I do not believe there is a vet on the board that would have a "material finanicaial interest" in the outcome on a vote on this rule - hence no conflict of interest.

In fact I would be very surprised if there were any vet related issues that would rise to the level a material finanical interest of a board member just because they were a vet.

Truman



Heidi Smith wrote:
000d01c1e4f9$25a451c0$aed8790a@heidi">
So you're telling me that NO veterinarians on the board who regularly vet rides should vote on any veterinary issues, NO ride managers on any issues pertaining to ride management, and NO riders should vote on such issues as awards programs?  I can see cases where we no longer have a quorum to vote.  And quite frankly, I vote for veterinarians, RM's, etc. who have knowledge, experience, and integrity precisely so that they CAN vote on those issues about which they are well-informed.  But the fact remains--ride veterinarians regularly provide service and receive money, ride managers regularly put on rides and receive money, and riders regularly ride and receive placings, awards, etc. which can in turn be used for various purposes, including advertising one's horses, etc.  My point is not that we should not be concerned about conflict of interest, but that this proposed bylaw rules a significant percentage of our board out of voting on the vast majority of issues that are presented to it--and I think the majority of our members have voted those very people ONTO the board precisely to HAVE their votes count on those very same issues.
 
Heidi
 
PS:  Here are the pertinent statements in the proposed bylaws:
 
7.12. Each Director shall act in good faith to serve the best interests of the Conference. To avoid conflicts of interests, each Director shall comply with applicable law as well as the following:
 
(a)Any Director with a material financial interest in a proposed direct transaction between the Director or the Director's immediate family and the Conference shall disclose such interest to the Board and shall refrain from voting on the transaction.
 
(b)Each Director shall file with the Conference no later than January 31 of each Ride Year a statement disclosing any conflict of interest between the Director's business or professional interest which is potentially impacted by decisions of the Board. Business or professional interests requiring disclosure include, but are not limited to:
    (1) Ride management;

    (2) Veterinary services to Rides;

    (3) Breeding or sale of Endurance equines;

    (4) Manufacture or vending of supplies for Endurance Riding;

    (5) Consultation for compensation to other persons or organizations relating to Endurance Riding.

A Director's "Conflict of Interest Statement" shall be updated throughout the year within 30 days of a change in circumstances requiring disclosure. The "Conflict of Interest Statement" of each Director shall be available at the National Office for inspection by other Directors and by Active Members of the Conference.

(c) A material financial interest of a Director shall include both an interest of the Director personally or an immediate family member and the interest of any employer of the Director or any person or organization with which the Director regularly contracts to provide goods or services.

----- Original Message -----
Sent: Monday, April 15, 2002 8:23 PM
Subject: Re: [RC] AERC By-law revisions

And if there are board members with a conflict of interest on a particular issue, IMO they should not be voting on said issue.

Truman

Heidi Smith wrote:
003a01c1e4ed$d78feb80$aed8790a@heidi" type="cite">
Truman, I'm not doubting that we need a provision regarding conflict of interest.  And making a statement in advance regarding what one does relative to the sport that brings in income is not a problem.  But truly, the way our board is structured, there is likely someone (and in many cases a great number of board members) who would technically not be able to vote on many issues, the way I read this.
 
Heidi
 


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