Personal Liability of Board & Officers

Hi Dick,
Florida homeowner and condo associations whose corporations have Non Profit status, are bound by Chapter 617 of the Florida Statutes... "Title XXXVI
BUSINESS ORGANIZATIONS Chapter 617 ....CORPORATIONS NOT FOR PROFIT " in addition to Chaper 720 or 718 (whichever applies to your situation).

In response to your inquiry, Chapter 617, specifically 617.0830 reads:

(4) A director is not liable for any action taken as a director, or any failure to take any action, if he or she performed the duties of his or her office in compliance with this section.
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The remainder of the section reads:

617.0830 General standards for directors.--

(1) A director shall discharge his or her duties as a director, including his or her duties as a member of a committee:

(a) In good faith;

(b) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

(c) In a manner he or she reasonably believes to be in the best interests of the corporation.

(2) In discharging his or her duties, a director may rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

(a) One or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented;

(b) Legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the persons' professional or expert competence; or

(c) A committee of the board of directors of which he or she is not a member if the director reasonably believes the committee merits confidence.

(3) A director is not acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (2) unwarranted.

(4) A director is not liable for any action taken as a director, or any failure to take any action, if he or she performed the duties of his or her office in compliance with this section.

HTH,
Ann

Thanks so much for your information. I supected that was true. If it wasn't almost nobody would serve in such a positon as a volunteer.

Charlie, I mean Dick is that you?

Good question, I wish you could sue the pants off these folks!!!