BOD Conflict of Interest
The Florida HOA ACT in Section 720.303 states that..... The officers and directors of an association have a fiduciary relationship to the members who are served by the association. The powers and duties of an association include those set forth in this chapter and, except as expressly limited or restricted in this chapter, those set forth in the governing documents.
Michael E. Chapnick, Board Certified Specialist in Condominium and Planned Unit Development Law for the Law firm of Sachs Sax Caplan, wrote in an article called " Your Fiduciary Duty", Tuesday, 04 April 2023 wrote about Fiduciary responsibility that "Fiduciary responsibility means you are a leader, entrusted with the task of acting in the best interests of the association and its members. This means that you must exercise the utmost loyalty, good faith, and due care in carrying out your responsibilities. Loyalty means that you must put the interests of the association and its members before your own personal interests. This can be a difficult task, especially if you have close relationships with certain members, vendors or suppliers. However, you must always remember that your primary responsibility is to the association, and that any conflicts of interest must be disclosed and dealt with appropriately." He further states, ."Good faith means that you must act honestly and with integrity at all times. This includes making decisions based on what you believe is best for the association, rather than your own personal gain. You must also keep the interests of all members in mind, not just a select few. This can be challenging when you are faced with competing demands or limited resources. However, you must always strive to make decisions that are fair and reasonable, and that reflect the values and goals of the community at large." Finally he says, " Due care means that you must exercise reasonable care and diligence in carrying out your responsibilities. This includes being informed about the issues facing the association, and seeking out expert advice when necessary. You must also be familiar with your association’s governing documents, rules and regulations, and applicable laws (Chapter 718, Chapter 720), in order to ensure that you are acting in accordance with their requirements. In conclusion, as a Florida community association officer and/or director, your fiduciary duty to the members of the association is of utmost importance. You must exercise loyalty, good faith, and due care in carrying out your responsibilities, and be diligent in your oversight of the association's finance"
