Do officers owe fiduciary duties?
Do officers owe fiduciary duties?
If you are an officer or director of a corporation, you have fiduciary duties to the corporation and to the shareholders (including to minority shareholders). In some cases, corporate officers and directors may even owe fiduciary duties to creditors of the corporation.
What is the fiduciary duty of a condo board?
Thus, the fiduciary duty in the co-op and condo board context illustrates the special responsibility that trustees and board members have, given their position of influence over the property and lives of the shareholders and unit owners.
When does a board of directors have a fiduciary duty?
Self-dealing occurs when board members obtain a personal advantage from their position on the board, and take an opportunity, no matter how big or small, that should have lawfully been available to the shareholders or unit owners of the co-op or condo. “Board members have a duty of loyalty to the condominium association as a whole,” says Flynn.
What are the fiduciary duties of HOA board members?
The duty of good faith requires the Board to settle matters on the merits without regard to the personal feelings of the fiduciaries involved. Within the duty of good faith, it is assumed that the Board members must treat all community members equally, to not do so is a breach of the required duty.
Why does a co-op board have a fiduciary duty?
Thus, the fiduciary duty in the co-op and condo board context illustrates the special responsibility that trustees and board members have, given their position of influence over the property and lives of the shareholders and unit owners. So what exactly does it look like when a board member breaches their fiduciary duty?
Thus, the fiduciary duty in the co-op and condo board context illustrates the special responsibility that trustees and board members have, given their position of influence over the property and lives of the shareholders and unit owners.
Self-dealing occurs when board members obtain a personal advantage from their position on the board, and take an opportunity, no matter how big or small, that should have lawfully been available to the shareholders or unit owners of the co-op or condo. “Board members have a duty of loyalty to the condominium association as a whole,” says Flynn.
Do you have a fiduciary duty to your community?
Whether they serve a co-op or condo community, trustees and board members, in their position of power, have a responsibility to govern and make decisions on behalf of that community often referred to as the board’s “fiduciary duty.”
Thus, the fiduciary duty in the co-op and condo board context illustrates the special responsibility that trustees and board members have, given their position of influence over the property and lives of the shareholders and unit owners. So what exactly does it look like when a board member breaches their fiduciary duty?