Fiduciary Relationship and the Business Judgment Rule

Community association officers and directors have a fiduciary relationship to the owners of homes or units in their community. Typically, this relationship is understood as officers and directors having the obligation to act in the best interests of the association and to refrain from obtaining or accepting personal benefits at the expense of the association. In practice, this relationship is complicated, can be misunderstood, and is sometimes raised by community members who seek to complain and/or make accusations arising from board decisions with which they disagree.