Board's Fiduciary Responsibility Is to Assemble a Professional Team

Daily Herald (Arlington Heights, IL), December 10, 2011 | Go to article overview

Board's Fiduciary Responsibility Is to Assemble a Professional Team


Members of an association board are caretakers of others property, and areconsidered fiduciaries of the owners. The highest standard of care is owed by a fiduciary.In order to meet the high standards of a fiduciary, the board has to take adequate steps tomaintain, repair and replace the property within the association and to administer andmanage the affairs of the association.

While board members are responsible for propertythat may be valued in the millions of dollars, many board members do not come from orhave a business background. To assist in making decisions and to administer the affairsof the association, the board should assemble a solid team of professionals to provideguidance and input on a broad array of matters.

This professional team generallyincludes a property manager, attorney, accountant, banker, insurance agent andengineer.

Property manager: For associations that are professionally managed, a propertymanager is the "quarterback" of the team. The role of professional management is multidimensional.In general, management handles the day-to-day operation of theassociation.This includes creating and carrying out maintenance programs and soliciting bids andrecommending contractors for maintenance projects, and having a good "stable" ofqualified and reliable contractors for consideration by the board.

Management alsoassists in preparing the annual budget and the annual accounting, invoicing for andcollecting assessments from owners, and maintaining the association books and records.

Boards rely on a professional management company to provide quality and timelyinformation that enables the board to make informed decisions pertaining to themaintenance, preservation and care of the property and assets of the association, and thewelfare, safety and lifestyle of the residents. Once the board has made a decision, themanagement company is entrusted with the responsibility of implementing that decisionin an expeditious and efficient fashion. Importantly, the property manager is the liaisonbetween the board and unit owners and the board and contractors.

Attorney: Many matters that come before, and decisions made by, the board havesignificant legal ramifications. It is important for a board to include legal counsel, wellversed in association law, on its team of professional advisers. Seeking legal counselearly in a matter can prevent problems, or prevent relatively small problems from turninginto expensive and time-consuming lawsuits.

The attorney provides a full range ofservices to the association. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Board's Fiduciary Responsibility Is to Assemble a Professional Team
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.