Another Pennsylvania business law / organizational dispute question:
May an attorney director of a school for the blind, act as both director-client and attorney, control legal services, not consult with the board, and build up $250,00[?] in fees to his own firm?
And my reply:
It’s not inherently wrong for a director of an organization to hire their own firm to perform work for the organization.
Such ‘self-dealing,’ though, must be fair and must occur in the open. What you have described sounds awfully suspicious — no director of any organization, non-profit or for-profit, can simply hire themselves (or their firms) to do work without any oversight whatsoever.
You may first want to check into what oversight there has been of the relationship; perhaps it has been approved, but through other channels. For example, chief executives (or other officers) usually have the power to hire third-parties to perform work for the organization without consulting the directors for each and every transaction.
If, however, he’s doing everything on his own, and the other directors object, then there’s a problem, and you may want to speak with an attorney.