Which statement is true about potential conflicts of interest for board members?

The statement that all conflicts must be disclosed is accurate because transparency is essential in maintaining trust and integrity within a community association. Board members hold positions of authority and fiduciary responsibility, and any personal interests that may conflict with their duties to the community can undermine their objectivity in decision-making.

When board members disclose potential conflicts of interest, it allows for transparency and allows other members of the board, as well as the community, to evaluate the board member's decisions. By doing so, they can either choose to recuse themselves from discussions or decisions involving the conflict or take other measures to ensure that their involvement does not negatively impact the community. This practice helps protect the interests of the community and fosters a culture of ethical governance.

In contrast, keeping conflicts secret can lead to trust issues and undermine the board's authority. Resolving conflicts without disclosure can create the appearance of impropriety. Lastly, only disclosing actual conflicts neglects the importance of addressing potential conflicts, which can also impact decision-making. Therefore, disclosing all conflicts is vital for ethical and responsible community management.