HOA Resource Library

The Common Interest Law Report

What Does It Mean For A Board Member To Be A Fiduciary?

By: Jan Kopczynski

For many years now, it has been well-established that homeowners associations have a fiduciary relationship with their members. But as we know, a homeowners association is, in most cases, a non-profit corporation - not an actual person - and therefore it must act through its board of directors just like any corporation must. As such, the law states that the individual board members themselves, of any corporation, non-profit or otherwise, owe their shareholders (or members, in the case of community associations) a special duty to ensure that the affairs of the corporation are managed in the best interest of the members. The failure of a board of directors to adhere to this heightened standard of care and loyalty can, an often does, result in serious liability to the corporation for failing to comply with this duty.  Click below to read the rest of the article.

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