Board members must disclose what potential issues?

Board members have an ethical and legal responsibility to disclose potential and actual conflicts of interest. This is crucial in maintaining transparency and trust within the community they serve. When a board member has a personal interest that could influence their decision-making, it is vital for them to disclose this information to avoid any appearance of impropriety or favoritism.

Conflicts of interest can arise in various situations, such as when a board member stands to benefit personally from a decision or when their relationships might compromise their ability to act in the best interest of the community. By disclosing these conflicts, board members ensure that all actions taken are in the community's best interest and that all members are informed about potential biases.

While construction penalties and violations of governing documents are important issues, the primary focus of disclosure pertains to conflicts of interest, which directly impact the integrity of the board's decision-making process. Thus, the necessity of transparency regarding conflicts is paramount, and this makes the identification of potential and actual conflicts of interest the correct response.