Question:
How are new board members indemnified ? By an attorney in writing ? Any other insurance requirements each board member should be insured for as being a board member ?
Also, does the board decide roles and if so does there need to be a President and Secretary role or can each one of the board members have a title of just Board member to ensure there is no designation of duties and that each member is being portrayed to residents with an equal role and responsibilities ?
– Anthony
Answer:
Hi Anthony,
Board members are indemnified through the governing documents. If your articles of incorporation don’t already contain the language, it is worth amending your bylaws to include indemnification provisions. A lawyer should be able to help you with this. Associations should also carry D&O insurance to protect the board in the event of legal action.
As for roles and responsibilities, it is best to elect officers to fulfill individual positions (President, VP, Secretary, and Treasurer). This way, you can clearly define the duties of each officer. For instance, the President presides over meetings while the Secretary takes minutes and the Treasurer is one of the signatories for checks or withdrawals. Ultimately, though, it depends on your governing documents, particularly your bylaws.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
