Boards Breaking the Rules

This article discusses the potential problems that can arise when condo boards and directors fail to fulfill their fiduciary duty. These problems can include infighting, loss of funds, legal issues, and declining property value. The article notes that most improper actions are minor and may result from ignorance or past practice. However, the failure to treat everyone equally can subject the corporation to claims of unfair treatment and legal liability. The article also highlights the importance of direct communication to resolve problems and the need to handle destructive directors. Meeting minutes are also important for documentation of board decisions and transparency. Overall, the article emphasizes the need for owner participation in identifying and dealing with problems before they result in material financial losses.