Definition
A legal obligation of board members to act in the community's best interest, not their own. It's what prevents self-dealing and corruption in HOA governance.
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Board fiduciary duty requires acting prudently, honestly, and in community interest rather than personal benefit. Violations include self-dealing, misuse of funds, or favoritism. Fiduciary duty protects members from board corruption and mismanagement. Legal action can enforce breaches of duty.
Pro Tip
Violations of this duty are serious. If you suspect corruption or favoritism, it's worth documenting and potentially pursuing action.
Example
Board fiduciary duty prevents board members from awarding contracts to family businesses without competitive bidding.