Legal Question in Real Estate Law in California

Corporate Fiduciary Duty
The rules of our Home Owners Association (which also includes commercial property) state that to be a member of the Board of Directors, a candidate must either live at the property or have a business there.

In July, a member was elected to the Board and to this day will not confirm that he has a business license (he does not live at the property) A search of the city records does not show this person as having a business license at this address. Three of the other members of the Board refuse to pursue this. What can we do?????

Asked on 10/24/03, 4:26 pm

2 Answers from Attorneys

Michael Olden Law Offices of Michael A. Olden

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Re: Corporate Fiduciary Duty

A great deal. The Board of Directors has a fiduciary duty to the homeowners included in the association. Many times they will take a strict reading of the rules as against a specific homeowner. In this case it is the reverse. What is the ulterior motive of the three members. If they are benefiting personally from this or have a close relationship to this individual you are in a better position then you would have otherwise been. I've been dealing with homeowners associations both representing them in selling them for over 30 years. I'm in the San Francisco Bay Area and if you wish to contact me 925 -- 945 -- 6000.

Answered on 10/25/03, 2:15 pm

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