What happens if a condo board member violates their fiduciary duty?

If a condo board member in California violates their fiduciary duty, the consequences vary depending on the severity of the violation. A fiduciary duty requires board members to act in the best interests of the condo association and members. When that trust is broken, it is considered a serious breach of ethics and may leave the association vulnerable to legal action. If a board member is found to have committed a minor violation of their fiduciary duty, the board may take disciplinary action in accordance with the association’s bylaws. This could include removing the board member from their position or issuing a formal warning. If the violation is more serious and causes the association to suffer a financial loss, the association may take legal action against the board member for breach of fiduciary duty. This could include a lawsuit for damages or civil penalties. In extreme cases, a board member violating their fiduciary duty could lead to criminal charges or personal liability. This is generally a last resort but could be pursued if the board member knowingly and intentionally caused significant harm or losses to the association. Both civil and criminal penalties can have severe consequences, so it is important for board members to take their fiduciary duties seriously.

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What happens if a condo board member violates their fiduciary duty?

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