Skip to content
BOL Conferences Top Gun 23
Thread Options
#53397 - 01/10/03 01:49 PM Serving on Boards of Customers
Anonymous
Unregistered

Are there any limitations on bank employees/officers serving on boards of customers? We have several officers who serve on boards of corporate customers. I think, as long as they abstain from any issues relating to the bank, we should be okay. Does anyone know of any problems with this?

Return to Top
Human Resources
#53398 - 01/10/03 04:27 PM Re: Serving on Boards of Customers
vaca Offline
Junior Member
vaca
Joined: Jun 2002
Posts: 37
When I was a commercial lender at a previous institution, I was asked to be on the Board of one of our commercial customers. I respectfully declined due to potential conflicts of interest. I did inform our Board and they subsequently created a policy prohibiting officers from being on Boards of customers (non-profit agencies were the exception). Our Board also felt it could be a conflict of interest.

I believe it would be a financial institution's policy that would govern this. I would be extremely cautious about it, though. I just felt it could create potential conflicts even if you abstain on certain issues. I would also wonder if you abstain on certain issues, are you providing the most guidance and benefit you can or should to that Board?

Return to Top
#53399 - 01/10/03 04:54 PM Re: Serving on Boards of Customers
complyguy Offline
Gold Star
complyguy
Joined: May 2001
Posts: 494
PA
Our bank prohibits employement with any of our customers and permits other functions only after approval by senior management. For example, I serve on the zoning hearing board (judicial function)of one of the townships in our area, but management has made it clear that I may never serve as a supervisor because of the executive power that is wielded by the board of supervisors.

Return to Top

Moderator:  Andy_Z, Gayla Sherry