Welcome to the Board of Directors.  Your position is an important one.  As a member of the Board of Directors you have certain responsibilities and duties.  We’ve put together some important information to assist you in your new role.

As a board member you have a fiduciary duty to the corporation and its membership.  Many board members ask us – “what in the heck does that mean?”

A fiduciary duty is an obligation to act in the best interest of another party.   For instance, a corporation's board member has a fiduciary duty to the membership or shareholders, a trustee has a fiduciary duty to the trust's beneficiaries, and an attorney has a fiduciary duty to a client.

When serving on the board the law forbids the fiduciary (board member) from acting in any manner adverse or contrary to the interests of the corporation (association), or from acting for his/her own benefit in relation to the subject matter. Each board member should exercise all of the skill, care and diligence at his/her disposal when acting on behalf of the corporation (association). 

A person acting in a fiduciary capacity is required to make truthful and complete disclosures to those placing trust in him.

Often times board members feel that the board must always see eye to eye.  Of course, that is the best case scenario, but, it isn’t always the reality.  Count on having some disagreements.  It is only natural. 

The key is to keep from taking it personal when your point of view is not the majority’s point of view.  Move forward – don’t harbor bad feelings against the other board members.  This only creates a situation that makes t difficult for everyone to work in.

Board meetings should not last more than one hour.  Start the meeting when it is scheduled to begin and get straight to business.  If you collectively have the focus to get done in an hour you’ll be amazed with how much you can accomplish.  If you have no time limit, the meeting will typically drag on and a lot of time will be wasted.  When time is wasted at a meeting then people are less likely to volunteer because they feel their time is wasted. 

One hour meetings have a major impact on volunteers.  Associations that hold focused, one hour meetings have more people volunteer.  It’s also important to note that those volunteers stay active the in the community for much longer.  Length of your board meetings may seem like a trivial matter, but it really does have a large impact on how the volunteers of the association view the organization and, in turn, how they view their role. 

Remember you are a representative of the Board and should not speak on behalf of the Board or the Association unless you have the Board’s permission to do so.  What you say can be binding.

As a full service management company Spectrum is here to help.  The Board chose Spectrum because of our expertise and refreshing customer service.  Spectrum is home to many of the industry’s experts.  If you ever have a question or a concern please contact us immediately. 

We hope you will enjoy your time while serving on the Board and encourage you to attend our board member training seminar series called Boardline.  For more information on Boardline click here.

 

 

Spectrum Association Management, LP offers this information for educational purposes only and not as legal advice.  The information provided in this article does not create a client relationship between you and Spectrum Association Management, LP, nor is this article a substitute for legal advice.  The contents of this article are subject to change without notice.   You should not rely or act upon the contents of this article without seeking advice from your own attorney.  Spectrum Association Management, LP is not a law firm. 

Spectrum Association Management, LP provides information in this article as a general resource to clients and other interested readers.  By making available access to this article, (i) Spectrum Association Management, LP is not purporting to render legal or other professional advice or opinions on specific facts or matters and (ii) Spectrum Association Management, LP is not creating or intending to create a client relationship between you and Spectrum Association Management, LP.