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If you want to protect the finances of your association, think about purchasing directors & officers (D&O) insurance coverage. PRIMARY DUTIES: Schedule, attend, and run board meetings Establish meeting agendas This means that an HOA board of directors has a fiduciary duty to their association and its members. Unless someone can prove that the board did not act with reasonable care, in the associations best interests, and within their scope of authority as a board member, the board members are generally protected from personal liability for negligence or mistakes made in their association role. And so, you want to be sure that you are serving your role and association as responsibly as possible. Additionally, it is important to note that lawsuits cost money, and the HOA likely has D&O insurance to cover legal fees and damages."} It is expected in most jurisdictions that sound business judgment includes consultation with experts for decisions that involve specialized knowledge. . Simply use the "Appeal an HOA Fine" product to have DoNotPay mail a demand letter for you. If a homeowner makes a reasonable request, an association may not dismiss it out-of-hand without diligently considering the proposal. "text": "The duty of care states that HOA board members must make informed decisions when voting on community matters. Of course, some rules can be vague, giving rise to misunderstandings. The following rights could be enforced through case precedents or state statutes, depending on the fact pattern. "@type": "Answer", Director Fiduciary Duties. If the policy is especially robust, it will also include any costs of litigation. Board members are required to exercise what is called a duty of care concerning their responsibilities. What You Must Know to Fulfill Your Duty to Your Association and Protect Yourself from Personal Liability. } "@type": "Question", "name": "What are the fiduciary duties of a board member? State laws and governing documents define the extent of an associations power." If, for example, the Board held up the sale of a condominium unit to a buyer until the new buyer would pay an extra fee that would be held by the HOA treasury, this, too, is considered self-dealing. Self-dealing does not need to profit the Board members necessarily. The legal responsibilities of HOA members usually fall under three categories: The duty of care states that HOA board members must make informed decisions when voting on community matters.