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Coop Board

Started by JacksonHole
over 14 years ago
Posts: 113
Member since: Apr 2011
Discussion about
Are coop board members personally liable for any damages due to potential negative decisions they make on behalf of the building whilst they are on the board...
Response by Pawn_Harvester
over 14 years ago
Posts: 321
Member since: Jan 2009

Possibly, if they act in bad faith. Typically, no. However, they can be sued, which is a major pain in the XXX. Many coops have D&O insurance to protect their board members...

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Response by Pawn_Harvester
over 14 years ago
Posts: 321
Member since: Jan 2009

Also, Jhole, you should be aware of the business judgement rule that shields board members. Being a board member is a major pain. You should get on your board, if you don't like how things are running...

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Response by rb345
over 14 years ago
Posts: 1273
Member since: Jun 2009

PH:

The business judgment rule only applies to shareholder suits, not to third
party claims, and also has a number of exceptions where it doesnt apply.

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