Ask the Experts

What is the duty of loyalty and care?

Board members also owe a duty of loyalty and care to the association and owners within the association. This duty requires the Board and individual Directors to act in the best interest of the association and not self-serving.

What does fiduciary mean?

Board members owe a fiduciary duty to the association and owners within the association to act in good faith and in the best interest of the association, with candor, loyalty, and care.

What is the Business Judgment Rule?

This rule has been codified in Florida Statute §607.0830 and provides that an association Board must make decisions in good faith; with the care of an and in a manner that the Board reasonably believes to be in the best interest of the corporation. The reasonable and prudent person acts sensibly, does things without serious delay and takes proper precautions. The reasonable and prudent person conforms to the standards of behavior and responsibility among ordinary people in our society at the present time, he seldom allows his emotion to overbear his reason and his habits are moderate and equable.