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Today, as part of our Board Member 101 series, we are discussing the Business Judgement Rule. Scroll to the end of this blog to start from the beginning! 

 

Directors Must Act: 

 

- In good faith 

- With the care that an ordinarily prudent person in a like position would exercise under similar circumstances 

- In a manner the Director reasonably believes to be in the best interests of the corporation 

- Safe Harbor - Bring in experts/consultants before voting on an issue 

 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?