Monday, October 1, 2018

Conflict of Interest

Corruption in the Church. From First Things:
Under Pennsylvania law, the directors of non-profits such as the Papal Foundation are under an obligation to disclose material conflicts of interest to their organization’s directors and officers, and to recuse themselves from board decisions in which their conflict of interest is implicated. McCarrick failed to make any disclosures to the Papal Foundation’s board or to recuse himself from board decisions, according to people present at the board meetings in 2017 and 2018.

If McCarrick knew that he was under investigation during any of the four board votes in which he participated, then under settled principles of corporate law, he appears to have committed a fraud upon the board of the Papal Foundation. According to Robert T. Miller, a professor of corporate law at the University of Iowa, “The legal effect of McCarrick’s apparent fraud upon the board is to taint the vote of every board member participating in the decision.” This may render the grant voidable and returnable to the Foundation at the instigation of the Attorney General of Pennsylvania or any of the clerical or lay members of the Foundation’s boards. (Read more.)

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