Doyon Employees Unable to Serve as Board Members
The bylaws of Doyon, Limited prohibit Doyon board members from also working as employees of Doyon or its subsidiary companies. Article III, Section 2 of the bylaws states that a shareholder-employee is not prohibited from running for the board. However, if the shareholder-employee is elected, he or she would have to resign as an employee in order to serve on the board.
The purpose of the bylaw is to prevent problems with lines of authority, avoid the appearance of favoritism and prevent possible conflicts of interest.
Lines of authority: A manager attempting to supervise an employee who also has the ability as a board member to influence the manager’s employment raises a lines-of-authority issue. Such a situation could influence the manager’s actions based upon the possible risk to his or her employment, instead of the manager acting strictly in the best interests of the business.
Perception of favoritism: Another issue that can come up is the perception that the board member/employee is treated more favorably than other employees. Whether the perception is true or not, the appearance could have an adverse impact on coworker morale.
Conflict of interest: A conflict of interest could arise if a Doyon board member was in the position to make a decision that affects the subsidiary where he or she is employed.
The Doyon bylaw prohibits board members from serving as employees of Doyon subsidiaries or affiliates including:
- Doyon, Limited
- Doyon Drilling, Inc.
- Doyon Associated
- Doyon Tourism
- Kantishna Roadhouse
- Doyon Aramark JV
- Doyon Anvil
- Doyon Utilities
- Doyon Remote Facilities & Services
- Doyon Natural Resources Development Corporation
- Doyon Government Group companies, including Doyon Security Services, Doyon Project Services, Doyon Management Services, Doyon Logistics, Cherokee General Corp., designDATA and Arctic Information Technology (Arctic IT)
- Northern Laundry Services
For more information, please contact the Doyon legal department at 459-2177 (in Fairbanks) or 1-888-478-4755 (toll-free).