WHAT MAKES A BAD BOARD MEMBER,,,SURFSIDE HOMES BY THE SEA, HUNTINGTON BEACH, CALIFORNIA,,HOA

Here's a list of scenarios in which directors and officers have liability:




•Continuing a wrongful practice after learning it's wrong



•Libel or slander



•Failing to pay HOA debts in a timely manner



•Improper management resulting in losses



•Receiving personal gain while performing as director or officer



•Making decisions based on adequate information and advised judgment



•Ignorance of HOA books and records



•Verifying content of official documents before signing



•Obedience to the governing documents



•Self dealing



•Aiding and abetting illegal actions of others



•Conflict of interest



•Carelessness in conducting business or legal matters



•Failing to see what could be seen by merely looking



•Inducing intentional or careless wrongdoing



•Ignoring statutory or regulatory requirements



•Insufficient oversight of officers or employees



•Nondisclosure of questionable or unlawful actions



•Willful wrongdoing



Because of all these traps and pitfalls a director or officer could fall into, D&O insurance should never be optional. No one should serve on a board without it unless, of course, you have absolutely nothing to lose. I personally don't know one person that doesn't. Do D&O.