Board Members Should Never Use Their Board Position for Personal Gain

Ohio community association board members are unpaid volunteers.  Most association governing documents clearly stipulate that the board members “shall serve without compensation” or “shall be unpaid volunteers.”  Under Ohio nonprofit corporate laws, board members are required to perform the duties of a director in good faith (known as the duty of care) and in a manner they believe to be in the best interests of the entire association (known as the duty of loyalty).  If a community association board member is using their position for personal gain, such as paying themselves or waiving the requirement that they pay their association assessments, their judgment and decisions will clearly be called into question.  More significantly, a disgruntled owner may very well charge that board member with a breach of the Ohio mandated duty of care and loyalty.  If such an allegation is made, board members are generally covered under the association’s “Directors and Officers” (D & O) insurance policy that is specifically written to cover “volunteers.”  A board member who is getting paid and/or not paying their association assessments may well find themselves without coverage under the association’s D & O policy.  As a rule, community association board members should never use their board position for personal gain.

Categories

Three bars icon gold

Recent blog Posts

Three bars icon gold

Winter Weather Reminders for Community Associations

As we deal with extreme winter weather, community association boards are dealing with challenges that come with snow, ice, ...
Read More →

What Happens If Your Annual Meeting Lacks Quorum?

Annual meetings are the cornerstone of association governance. They are where owners elect board members, review ...
Read More →

2026 Resolutions to Help Your Board Build a Stronger, Better-Run Community

As 2026 begins, community association managers and board members have a valuable opportunity to reset expectations and ...
Read More →

L.H. Hipshire v. Oakwood Village: Why Ohio’s Supreme Court Dog Bite Case Matters for Community Associations?

The Ohio Supreme Court is currently weighing a case, which may have significant implications for condominium and homeowner ...
Read More →