Can Condo Board Members Be Held Personally Liable?

A. Actually, Board Members of a condominium (or homeowners) association

can be sued personally

, but only within specific parameters. … A person bringing such a claim must prove that the Board member breached his or her fiduciary duty to the association.

Can a board member be removed by the board?

Regardless of the issue, removing a member of the board won't be easy. … In Alberta, for example, a board can call a

special members' meeting

, vote the director out, and replace them with someone else.

Can a condo board remove a board member?

For example, under California law the HOA board can only remove a board member for one of four reasons:

a court has declared the board member to be of unsound mind

; the board member is convicted of a felony after election to the board; the board member failed to attend a certain number of meetings as stated in the …

How long should a board member serve?

California law regarding directors' terms for nonprofit public benefit corporations is codified at California Corporations Code Section 5220. Directors serve for a period of time specified in the articles or bylaws,

up to 4 years

(or 6 years for organizations without official, “statutory” members).

How do you deal with a rogue board member?

1. Directly communicate with the board member.
2. Hold a special committee session to discuss behavior.
3. Remove the board member, even if it is the Board Chair. No board member is above the mission. Be sure your by-laws are up to date and followed to the letter.

Can a board member be sued individually?

Typically cases against individual board members get dismissed because

there's no legal basis to sue a board member

personally for actions taken in a board capacity. … “There's only a valid basis for a lawsuit when board members are acting outside the scope of their authority or not acting in good faith.

Can I sue my condo management company?

You

can sue the manager of a real estate property for negligence

in the same way that you can sue any other business owner. With some exceptions, suing a property manager for negligence is straightforward, but it's not always a good idea.

Can condo board members be paid?

Board members are considered volunteers.

They aren't paid a salary or a fee

, and they don't get to benefit from any special perks.

What is the typical term for a board member?

The most common board member term structure is

two consecutive three-year terms

. A staggered term system allows a certain number of new members to be chosen each year, preventing no more than one half (preferably one third) of the terms from expiring at the same time.

How long is too long on a board?

You do not want to

lose more than one-third of your board at one time

. I suggest that the term length be in the two-year to three-year range and that members serve a maximum number of three to four terms. This would ensure that no one board member serves more than 10 years on the board.

Do board members have term limits?

Terms are simply a length of board service. Typically, they are spelled out in an organization's bylaws. For nonprofit organizations, BoardSource recommends

two consecutive three-year terms

. For for-profit corporate boards, the National Association of Corporate Directors (NACD) recommends term limits of 10-15 years.

How do you deal with difficult board members?

1. Confront the issue head on…. and in person. …
2. Focus on the organization not the person. Ask yourself what will allow you to best meet your organization's mission and ask your board member to do the same. …
3. Use specific examples. …
4. Use “I-messages.” …
5. Listen.

How do I get rid of a bad board member?

1. Personal intervention. One-to-one intervention by the board president or other board leadership is a less formal solution to managing problem board members. …
2. Leave of absence. …
3. Term limits. …
4. Impeachment.

What are the responsibilities of a condo board president?

Typically, the board president's role is

to preside over meetings of the board and members, act as a liaison with management, and carry out the directives of the board

. A board president's powers are generally limited by the control and direction of the board, which is the governing body for the association.”

When Can board members be held personally liable?

A director or officer of a nonprofit corporation can be held personally liable if he or she:

personally and directly injures someone

.

personally guarantees a bank loan or a business debt on which the corporation defaults

.

When can directors be held personally liable?

If you have signed a director's personal guarantee on any loan, lease or contract, you will be made personally liable for

the debt if the company is unable to pay

. Typically, personal guarantees are required on loans for business vehicles or equipment, a credit line from a bank, or a commercial lease.