ALTACITIES® ▶ HOA ‘Business Judgment Rule’
VIDEO ▶ SLIDESHOW THIS SITE DOES NOT GIVE LEGAL ADVICE Enter your email address: Delivered by Feedburner Homeowners won’t reside long in a California Common Interest Development or Homeowner‘s Association (HOA), without coming to face with the state corporations code . Even though officers and directors are deemed fiduciaries, boards are not required to make the "right" decision. Rather, they must make what they believe to be the best decision for the corporation with the available information. Corporations Code §7231(a) protects directors from personal liability if they make decisions that result in damage or loss to others, provided their decisions were made: In good faith , In a manner which the directors believe to be in the best interests of the corporation, and With such care, including reasonable inquiry , as an ordinarily prudent person in a like position would use under similar circumstances. The most-often cite...
