Question
Mr. Willy Watt is on the governing board members of Apex Hospital, and at the same time, he is a partial owner of an electrical
Mr. Willy Watt is on the governing board members of Apex Hospital, and at the same time, he is a partial owner of an electrical restoration company that would like to bid for a contract in the Hospital. The first contractual legal jeopardy Mr. Willy Watt has is "Conflict of interest". Conflict of interest is when a person has a duty to more than one person or organization but cannot do justice to the actual or potentially adverse interest of both parties, when a public official's personal interest is in contradiction to his loyalty to public business. (Conflicts of interest, 2003 -2021). When there are concerns of inconsistencies of the best decisions for the organization. There is no doubt that Mr. Willy Watt has a "conflict of interest" because he cannot be totally impartial and do justice being on the Board of the Hospital and at the same time be a partial owner of the Electrical company bidding for the contract. The issue of conflict of interest does not necessarily be proofed but if there are concerns or seemingly doubts about the responsibility of Mr. Willy Watt emanating from other governing board members, it is a ground to disallow the electrical company from bidding.
If Mr. Willy Watt would like to bid, he must be exempted from the board and relinquish his fiduciary responsibilities as governing board member of the Apex Hospital. His fiduciary responsibility to Apex Hospital is to show complete loyalty, trustworthiness and be financially Accountable to the Hospital. He must discharge his responsibility without fear or favoritism. The governing body must exempt Mr. Willy Watt from the board's decision awarding the Electrical contract.
I recommend the best step Apex Hospital board to follow is not to allow Mr. Willy Watt to bid because there seem to be reasonable concerns about his loyalty and interest, and secondly, his interest cannot be determined where it belongs either with Apex or with an electrical company
Therefore, he should relinquish his position as a board member if he must bid.
Instructions:
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Apex Hospital is in need of major renovation of its electrical system. One of Apex's governing board members, Willy Watt, is an electrical contractor who is a partial owner of an electrical restoration company. He would like to bid on the project. May he? If he does, what must he do? What must the governing board do? Is there a problem with Mr. Watt's fiduciary duty? Is there a problem with the governing board's fiduciary duty? Recommend the best steps that Apex Hospital should follow.
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