This By-Laws document for a condominium association contains information concerning: restrictions, the board of directors, and the advisary committee.
Bylaws Condo Association With Board Members In Cook
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State:
Multi-State
County:
Cook
Control #:
US-00452
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Word;
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FAQ
Per the Illinois inium Property Act, board members owe a fiduciary duty to the association and its members, but what does that mean in practice? Here we break it down: All decisions must be made in the best interest of the community – That means community interests come before individual interests. Full stop.
Directors bear fiduciary duties to protect the interests of the corporation and to act in the stockholders' best interests. When stockholders invest in a corporation, they entrust their capital to the corporation's directors.
The Illinois General Not for Profit Corporation Act, which governs the vast majority of associations, requires that the board of directors of a corporation consist of three or more directors with the number of directors established in the bylaws.
On the flip side, board members can be held personally liable if they engage in illegal activities, breach their fiduciary duties or personally benefit from association transactions.
Specifically, Section 18.4 of the Illinois inium Property Act states that a inium board must "exercise the care required of a fiduciary of the unit owners." This duty is also set out in the Illinois General Not for Profit Corporation Act.
Fiduciary duties include a duty of loyalty, meaning the fiduciary must act in the company's or person's best interests and not for their own personal gain or interests. The duty of care owed by a fiduciary requires them to make reasonable and informed decisions for the company or individual.
A: Section 18(a)(1) of the Illinois inium Property Act requires individuals to be a unit owner to serve on the board of directors, which means any ownership interest in the unit.