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May 17, 2010 First, to meet the fiduciary duty to repair the property commonly shared by the owners, ensure that appropriate action is taken to reach a business judgment regarding whether to proceed with a claim (or potential claim) for damages to common property. This must be done with sufficient time before the limitations period pass.. Thus, the initial COA Board Members, who are appointed by the original Declarant, are held to a true fiduciary standard, while subsequent COA Board Members are held to a somewhat less stringent ordinary and reasonable care standard. In addition, Board Members must exercise good faith (2) in carrying out their Board duties. A board of directors can be held liable for breach of fiduciary duty and negligence for failing to timely pursue a construction defect claim against a developer. Smith v. Superior Court 217 Cal.. This is true for condominium Boards. The authority and responsibility of a Board is normally set out in the statute that relates to the nature of each organization. For condominiums here in. Owners elect a board of directors to oversee the business affairs of the condominium corporation. As an owner, you are a member of the condominium corporation, so board. (Frances T. v. Village Green Owners Assn. 1986) 42 Cal.3d 490, 513.) As fiduciaries, directors are held to a higher standard of conduct and are required to uphold two (2) primary fiduciary duties (1) the duty of care, and (2) the duty of loyalty. Duty of Care (Due Diligence).
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