New Hampshire Code of Ethics, Duty of Care of Board of Directors of Homeowners' Association
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FAQ
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.
The primary obligation of a director is to ensure that the community is abiding by the bylaws and other corporate documents of the community along with complying with all relevant federal, state, and local laws. Depending on where our readers live, state laws may require much of the directors, or very little1.
A board of directors is a requirement for a homeowners association to function properly. These elected volunteer officials are responsible for all operations of the association and ensuring the community governing documents are followed and enforced.
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.
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.
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.
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...?