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

If a condo board member in Texas violates their fiduciary duty, the consequences depend on the type of violation and the circumstances surrounding it. Generally, a condo board member owes a fiduciary duty to act in the best interests of the condominium association, and to make decisions in good faith. When a board member violates their fiduciary duty, the other board members can file a lawsuit against them. Depending on the severity of the breach, the board member could face reimbursements of money taken, punitive damages, being removed from the board, and/or criminal charges. Additionally, the other board members can also seek court-ordered injunctions in which the offending board member agrees to cease any conduct that violates their fiduciary duty. Injunctions are legally binding orders that someone must follow, and failure to do so could result in criminal punishment. If the violations are severe enough, a court can also prevent the offending board member from running for office or serving on any condominium board in Texas. The board member may also be required to pay back all of the money taken illegally. In all situations, it is important for condo board members to be aware of their fiduciary duties and the consequences of their actions. Doing so can help them avoid potential legal ramifications and preserve the integrity of the board.

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

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