Care
This duty requires a board member to stay informed and make reasonable decisions.
What is the Duty of Care?
This duty requires not disclosing sensitive board information.
What is the Duty of Confidentiality?
This duty requires putting the organization’s interest first.
What is the Duty of Loyalty?
This duty requires following the organization’s mission.
What is the Duty of Obedience?
This duty requires proper handling of financial resources.
What is the Duty of Accounting?
Reading board materials before meetings is an example of this.
What is fulfilling the Duty of Care?
Sharing internal discussions with outsiders.
What is a breach of Confidentiality?
Having a financial interest in a board decision creates this.
What is a conflict of interest?
Board members must ensure compliance with this type of law.
What are federal, state and local laws?
Board members must review these financial documents regularly.
What are financial statements?
Honest, good business judgement, actively engaged in and being prepared.
What is "reasonable personal standard"?
A smaller group of the BOD that keeps the information confidential until they are ready to share with the entire group.
What is an executive session?
This document helps identify and manage loyalty issues.
What is a Conflict of Interest Policy?
This governs how our board is to operate.
What are bylaws?
This is the term for tracking and documenting income and expenses.
What is bookkeeping?
To promote the highest interest of the Association
Who do officers and directors owe the duty of care to?
This duty continues even after this happens.
What is resignation or leaving the board?
Failing to disclose a conflict can result in this.
What is legal action or loss of trust?
Even if a leader disagrees with a board decision, this is expected of them under the duty of obedience.
What is to support the decision once it's made?
Failing to meet this duty can result in this.
What is financial mismanagement or legal penalties?
To thoroughly investigate facts, verify material, and come prepared information.
What is Due Diligence?
Even after their term ends, a board member is still bound by this duty, which prohibits disclosing privileged information gained during service — including executive session discussions, legal matters, and personnel issues.
What is Confidentially?
This legal term means acting in good faith and fairness.
What is fiduciary responsibility?
The duty of obedience helps ensure that leaders stay true to these two guiding principles of the organization.
What are the mission and goals?
Measures designed to safeguard assets, prevent misuse of funds, and ensure proper oversight of financial transactions
What are internal controls and procedures?