Board members are unpaid volunteers trying to make the best decisions to maintain their community and property values. A board must vote to fund repairs, make improvements to the community, raise dues and allocate reserves. Most board members are not necessarily skilled with financials, well versed in how to select a vendor, familiar with insurance requirements and have expertise in the many other areas of required to run a community. Because of this, some board members fear personal liability and legal recourse against them for making these decisions. There are few professional board directors, but many caring volunteers trying to do their best.
Here is the good news: you are insured. A corporation, and an association is a non-profit corporation, has the power to protect its agent, that is you, the Director, against judgements, fines and defense costs in connection with any legal proceeding, “if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the corporation (or community).” Simplified, you must show best business practices in the decisions you make, or you may be personally liable for those decisions. That is where we come in: we help you make the best decisions for your association and protect you from legal harm.
What duties do we provide to you to keep you clear of liability?
- Provide accurate monthly financials
- Maintain adequate insurance coverage
- Obtain three bids for any major project
- Keep accurate minutes of your meetings
- Use fiscally healthy financial institutions
- Establish checks and balances in the day-to-day handling of association funds
- Keep the community in compliance with the Davis-Stirling state statutes
- Send all required disclosures to owners annually
- Communicate to the board new laws and legal requirements
Serving on your board should be gratifying and fulfilling and not expose you to personal risk and loss of assets. For a low monthly fee, we will make sure you maintain best business practices and indemnify you from any potential legal harm.