FIDUCIARY DUTY of our Board of Directors

 

Websters defines fiduciary as a trustee (noun), and as follows: involving trust, especially with regard to the relationship between a trustee and a beneficiary (adjective). In other words, it is a relationship where one party is legally accountable to the other to serve its interests before their own.

BoardSource says it this way:

Fiduciary duty requires board members to stay objective, unselfish, responsible, honest, trustworthy, and efficient. Board members, as stewards of public trust, must always act for the good of the organization, rather than for the benefit of themselves. They need to exercise reasonable care in all decision making, without placing the organization under unnecessary risk.

Being a fiduciary obviously includes the financial aspects of a nonprofit. Each board member has a responsibility to ensure, to the best of their ability, that all funds are handled and accounted for in a transparent and compliant manner. 

 

Ask yourself if not allowing home owners to see financial reports, while being presented during the monthly meetings, that deal with the handling of our money is complying with the legal requirement described above. What are they hiding ?

THE BOARD of Directors - vs - YOUR RIGHTS

We live in a deed restricted community and elect (5) home owners to serve on the board of directors to handle the affairs of our neighborhood and to always protect and serve our best interest. This FIDUCIARY DUTY is required of them in our (CC&R) governing documents and the laws of state of Texas  and it is our right to demand and hold the board accountable in all of their functions and decisions and all who they hire and/or enter into contract with. 

There has to be monthly meetings, open to all home owners who wish to attend, to explain the subject and nature of the board's votes during the period of time since the last meeting and for this purpose, (PMI) our property manager presents reports that should list all spendings and payments and the board is responsible for the validation/verification of all this information. There have been mistakes that have cost our neighborhood funds as a direct result of the board's failure to do their job to protect our money and this problem still continues in the ongoings of these monthly meetings.

Accountability and transparency is what is lacking and will prevent mistakes and misappropriations like what the board is continuing to cover up and hide from public knowledge. Paying for things from our subdivision funds that shouldn't have been ?! Our CC&R contain the rules for the spending of our neighborhood money and they are not always being followed.

The board has now taken a position of denying the right of home owners to be able to see these reports as they are being presented and wants home owners to send written request and pay for these reports to review them ...... What are they hiding and don't want you to see?  It's our neighborhood, our money and our right to know.

Be a part of the solution, tell others and make an effort to attend these meetings and ask questions about your neighborhood. Did you know that you have the right to vote the board out if they don't do what's expected of them ?! They don't own our neighborhood and are a home owner just like you.