1. REASONS FOR RULES AND REGULATIONS
a) PRESERVATION AND ENHANCEMENT OF PROPERTY
WHAT IS 'ADR': Alternative Dispute Resolution ('ADR') is any one of a number of methods designed to resolve a dispute without the necessity of a lawsuit or trial.
Board members have a fiduciary duty to the association/corporation and arguably directly to the individual members. Fulfillment of this duty requires that the board members exercise utmost good faith.
In ordinary corporate matters, the 'business judgment rule' is the standard by which board action is evaluated. The business judgment rule generally provides that, so long as the board members fulfill their duties of 'care' and 'loyalty' the board's decisions will not be second-guessed by a court.
1. Do not sign the contractor's proposal.
2. Have an attorney prepare anything larger than a nominal contract.
3. Make sure any conflicts of interest are fully disclosed and acknowledged in writing.
October 27, 2007 CAI-NJ Conference and Expo - Refreshing Insurance
1. Cultivate a Relationship with the Association's Insurance Representative
Insurance representatives make their living selling insurance and maintaining accounts. They are professionals and should be a part of the Association's professional services team. Association boards should be familiar with their insurance representatives and use them as a resource. Too often, board members do not even know who their Association's insurance representative is until a problem arises.