Board Responsibilities: LOMAA Handbook Section 1
- by John Renwick
- A Board Member is a Fiduciary.
- FIDUCIARY: A person to whom property is entrusted to hold, control or manage for others.
Board members conduct the affairs of the association under the powers granted by the Protective Restrictions and the membership of the association. The board owes the association and membership a fiduciary duty when it exercises its powers. Generally, there are two primary duties a board member is bound to follow:
- Put the interests of the association above your own personal interests; and 2. Always exercise your prudent business judgment. The California Corporations Code Section 7231 requires a director to perform duties 1. In good faith (i.e., sincerely and honestly);
- In a manner the director believes to be in the best interests of the association; and…
- With such care as an ordinary prudent person in a like position would use in similar circumstances.
Following the foregoing guide an association will benefit from their board’s management and decisions.
- Fiduciary responsibility remains with the association board even though a professional manager is hired.
- If the Association Board has any questions, contact the President of the LOMAA Board. If she does not have the immediate answer, she will advise as to whom to contact. This is one of the duties of your LOMAA Board.
Next Board Meeting: Monday, October 1, Room B, 12 noon.