Prof. Richard Painter Quoted in Yahoo News About North Dakota Governor Candidate and Potential Conflict of Interest

Professor Richard Painter, S. Walter Richey Professor of Corporate Law, was quoted in Yahoo News about Republican Kelly Armstrong, the favorite to win the North Dakota governorship, and his ties to the oil and gas industry there. If he becomes governor, Armstrong will automatically chair two state bodies that regulate the energy industry, meaning he would be expected to preside over decisions that directly impact companies in which he has financial or familial ties. Armstrong said he will not divest his oil and gas interests, nor will he place his holdings in a blind trust. Many boards in North Dakota use a version of the “neutral reviewer” process: If a board member discloses a conflict of interest in a matter under consideration, the remaining members vote on whether their conflicted colleague is disqualified. But several ethics experts have said it is best practice for officials with a conflict to automatically recuse themselves. Prof. Painter called the board policy in North Dakota “flawed.” “There’s going to be a lot of pressure on the other board members to say, ‘No, it’s OK for you to go ahead and vote; I don’t think you’ve got a conflict.’”