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Yearly Archives: 2015

Community Association Board Members are Protected by the Business Judgment Rule

January 19, 2015 Community Association Industry Legal Blog

Board members oftentimes hesitate in taking necessary actions as they become frozen by the fear that their decisions may lead to unintended consequences. This results in critical decisions being delayed—the proverbial kicking the can down the road. Yet, depending upon the situation, the failure to act could produce a worse outcome. Board members do have a fiduciary duty and responsibility to their associations, and the fear of breaching this duty is what leads to board members hesitating when it comes to making major and difficult decisions. However, the “business judgment rule” applies to association board members just as it applies to other corporate directors and officers. This Blog post will discuss how community association board members are protected by the business judgment rule.

Ten Things Every Newly Elected Board Member Should Know

January 15, 2015 Community Association Industry Legal Blog

This is the time of year when many community associations hold their annual meetings where elections are held and newly elected members assume their roles within the board of directors for the first time. Being a board member is a major commitment, both in terms of time and responsibility. Because most association bylaws state that board members shall serve without compensation, those who serve truly do so because they love their communities and desire to improve them. Despite those good intentions, many newly elected board members are not familiar enough with association governance to make an immediate and positive impact on their communities. This Blog post is for the newly elected director and lists the ten things every community association board member should know.

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