What is the Business Judgment Rule and How Does it Protect the Board of Directors of a Community Association?
By Jay Shearer, Esq.
November 20th, 2020
A community association’s board of directors is often tasked with making difficult and sometimes controversial decisions regarding community issues, such as covenant enforcement, collection action against delinquent owners, or larger issues with neighboring associations or governmental entities, among other issues. The gravity of these critical decisions can be stressful for board members and create questions regarding their own exposure to liability. A common question and concern from community association directors in these situations is, “Can I be held personally responsible for my actions as a director?”
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