Insurance brokers are often asked for advice by Community Association Boards on managing the demands of transparency on the board. In their fiduciary capacity, boards must juggle statute and by-law requirements of transparency with the boards accountability to residents for effectiveness. Below are some points to consider and some articles from various sources that deal with the topic more extensively.
- Most D&O policies do not provide coverage for breaking the law. Boards should be aware of the statutory requirements for transparency and the requirements of their by-laws. Association attorneys should be consulted to confirm that boards are operating within the parameters of each.
- Access to information procedures should be clear. When can residents have access? Can residents make copies of association documents? Can they take pictures? How will information be made available?
- How are privacy issues handled? Boards will have sensitive information that needs to be handled correctly. With electronic record keeping boards have a responsibility to secure personally identifiable information for residents. Data breach coverage should be up to date and understood.
- How will the board deal with residents who abuse access? Attorneys and Community Association forums can provide guidance on strategies for dealing with these situations.
Below are links to some articles that deal with this subject from various sources more extensively:
- Condo Association Boards Have Duty to Be Transparent
- Lifting the Veil of Silence – Board Transparency
- Why Do Boards Hide? Transparency Doesn’t Bite