Every year, Boards of Directors face the issue of a director
failing to appear at meetings, failing to read and prepare prior to meetings,
and failing to contribute to the governance of the community. A typical clause in the Bylaws gives the
Board permission to relieve non-active members, but only if three meetings in a
row are missed.
Besides working to amend the documents to permit removal
under other circumstances, non-active directors need to be advised about the personal
liability they are exposing themselves to by not acting in their fiduciary capacity. The U.S. Supreme Court chimed in on this
issue in Bowerman v Hamner, when a director who did not attend meetings from
1905 to 1911, and failed to be involved in oversight. The fact that he lived 200 miles away (prior
to automobiles) was not an excuse in the eyes of the court, which held him
personally responsible.
Although a community may struggle to attract
leaders to serve on the Board, it is critically important that those who do
volunteer recognize that their function is not window dressing, or a social
club: Their decisions have a very
real-world impact on the values of the land and homes in the community,
collectively worth millions of dollars.
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