BOARD MEMBER CODE OF ETHICS

All members of the Board of Directors should hold themselves to a high level of ethical standards in the performance of their duties.

While these standards are not codified in law, they often include legal standards of conduct.  They then can go further to better suit the nature of business being conducted, for example, a homeowner’s association, and include relevant examples.  

Some examples of actions that can cause members to lose trust in a board include:

• Lack of transparency.
• Failure to involve members in decisions and/or usurp voting rights.
• Making disparaging remarks about or acting out against members. 
• Poor financial decisions and/or planning.
• Unfair contract awards and/or awarding contracts or work to family/friends.

To our knowledge, a code of ethics resolution has not been made by the current board.  When Mike was previously a member of the board, he had intended on working with the board to have one drafted but was unable to do so prior to him having to step back.  

The Board of Directors, current or future can have a Code of Ethics resolution drafted which will require each director/officer to acknowledge receipt of it at the start of each of their terms.  

Having this in place will ensure every member of the currently seated board is aware of their ethical duties and the consequences of breaching those duties.  This will certainly help to foster trust and accountability with members of the association.  

We are calling on the upcoming board, whether Mike and/or Chrissy is a part of it or not, to set as a priority, to have the associations attorney draft a code of ethics resolution that requires the currently seated board as well as all future boards to acknowledge by signature receipt and understanding of the association’s code of ethics requirements for all directors and officers.  

The document to the right was drafted by Community Associations Institute and outlines key points that may be contained in a code of ethics resolution.  While this is not in resolution format and does not discuss the consequences of breaching ethical duties, it can serve as a starting point in drafting the resolution.  

 
Model-Code-Of-Ethics