board/director/ARC decisions, standard for

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See also Index, conflict of interestliability, director; and business judgment rule.  As to the association's duty, see also Index, duty to treat owners fairly.

A director (board member) must act with business judgment. 

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See also Index, architectural review.

Statutes and Cases:

(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)

16-6a-822. General standards of conduct for directors and officers
16-6a-902. Authority to indemnify directors
16-6a-904. Advance of expenses for directors
57-8-10.7. Board action to enforce governing documents -- Parameters
57-8-7.5. Reserve analysis -- Reserve fund
57-8-8. Compliance with covenants, bylaws and/or house rules and administrative provisions
57-8-8.1. Equal treatment by rules required -- Limits on rules
57-8a-211. Reserve analysis -- Reserve fund
57-8a-212.5. Compliance with governing documents
57-8a-213. Board action to enforce governing documents -- Parameters
Fink v. Miller (abandonment of covenant, enforcement) '95
Fort Pierce v. Shakespeare (CC&Rs not strictly construed) '16
Levanger v. Vincent (strict compliance, voting procedures) '00
Park West Condo v. Deppe (which law governs, strict compliance) '06
Reedeker v. Salisbury (director liability, ultra vires, CC&Rs are a contract, interpretation, governing law) '98