Montana Code of Ethics, Duty of Care of Board of Directors of Homeowners' Association

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Multi-State
Control #:
US-1127BG
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Word; 
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Description

Homeowners require their properties to be properly maintained; they expect a healthful living environment; and they anticipate the Board of Directors will function efficiently and effectively and provide a financially sound organization. Accordingly, the services provided by the Board of Directors require honesty, impartiality, fairness and equity, and must be dedicated to the protection of the public health, safety, and welfare. Board of Directors must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct. Board Members, therefore, must be eager to maintain and improve the standards of their calling and share with their fellow homeowners a common responsibility for its integrity and honor. As such, Boards of Directors pledge to observe its spirit in all of their decisions and to conduct the business of the association in accordance with the creed set forth.
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FAQ

Members are sometimes confused by the difference between officers and directors. Directors are elected by the membership, while officers are named by the board to keep minutes, oversee financials, etc. Officers are required by statute but being an officer does not give one the power to vote.

HOA board fiduciary responsibility prevents board members from making decisions to further their personal interests. Board members must also avoid an HOA board of directors conflict of interest. This includes choosing a family-related vendor or voting on issues with a bias.

Generally, the board of directors is responsible for making major business and policy decisions and the officers are responsible for carrying out the board's policies and for making the day-to-day decisions.

While the role of a management company is to offer a helping hand, the board should still retain all decision-making tasks. HOA management company duties include assisting with administrative work, executive board decisions, and communicating with residents.

There are three ways to help nonprofit organizations deal with rogue board members.Directly communicate with the board member.Hold a special committee session to discuss behavior.Remove the board member, even if it is the Board Chair. No board member is above the mission.

What Makes a Great HOA Board Member?Enjoy volunteering.Are civic-minded.Are positive and optimistic.Exercise fairness.Know that the rules apply to them, too.Take their role seriously.Have a mind for business.Understand that their authority comes as a board, not a board member.More items...?

Preserve All Board E-mail Just as e-mail sent at your job isn't private, nor is e-mail private when you're communicating with other board members or owners in your capacity as a board member.

Creating a Code of Ethics for HOA Board MembersCommit Yourself to the HOA.Follow Your Governing Documents and Applicable Laws.Disclose and Avoid Conflicts of Interest.Practice Confidentiality.Never Discriminate.Exhibit Professional Behavior.Always Work Within the HOA's Structure.More items...?23-Sept-2020

Because Directors are elected by the membership, it usually requires a membership vote to remove Directors from the Board. Contrastingly, Officers are not necessarily members of the Board. Rather, Officers are people who have a specific job titleusually President, Vice President, Secretary, or Treasurer.

Duty of loyalty requires HOA board members to act in good faith to promote the best interests of the entire association. HOA board fiduciary responsibility prevents board members from making decisions to further their personal interests. Board members must also avoid an HOA board of directors conflict of interest.

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Montana Code of Ethics, Duty of Care of Board of Directors of Homeowners' Association