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Have you been keeping up with Board Member 101? In this series, we are sharing all the basic things one would need to know on rules, roles, and how to run a meeting. Today, let's look at Part 3, the Fiduciary Duties of Directors. 

 

The Director must operate in a position of trust and adhere to specific standards of care including: 

 

- Obligation of good faith 

- Place the interests of the Association ahead of their own 

- Avoid conflicts of interest when 

     a. Voting on a contract where a Director's company is a bidder 

     b. Deliberating or voting on a fine for violations of the governing documents regarding your own home 

     c. Company you work for has an ownership interest in a bidder 

- If conflict exists, recuse him/herself and not deliberate, participate, or vote on the pending matter 

 

All officers and members of the executive Board are fiduciaries and shall act on an informed basis, in good faith, and in the honest belief that their actions are in the best interests of the Association. 

 

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 Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?