Hello, I`m a recently elected administrator in a condominium complex. The election took place in March, and now, in mid-July, we are being asked to sign confidentiality agreements. Do I have to sign? I am concerned that the NOA will be used to prevent some of the board`s unsenterious practices from being made public. There is nothing in our statutes on an NDA. A board member running for re-election is publicly mocking the idea to show how he is agitating this board – by providing blatant misinformation. Board members are saddened by the fact that it discloses confidential information that was discussed at a board meeting and sends a formal notice to stop. “With regard to these agreements, a common question is: if a member of the board of directors refuses to sign such an agreement and the administrative documents do not require it, what can the association do? In most cases, the answer is that the House cannot deny service to the board member. A policy is also something that van Rooyen believes can be used to avoid this problem. “We always recommend that the authorities sign a code of ethics for the board of directors,” he says.
“It should be noted that board members do not use the information they receive at board meetings to their own advantage or use it against other members of the association.” That`s right, Ducharme said. “If the owners don`t want to remove this board member, at least the board of directors has protected itself,” he says. “If this board member violates again, go back to that process. You have drawn members` attention to the fact that this person represents his or her own agenda and does not work with the board of directors. The management of this situation begins long before the break-up. “I`ve done it once before, where there`s this rogue board member who discloses confidential information to members, and it`s usually litigation,” says Alessandra Stivelman, a partner specializing in communal law at Eisinger Brown Lewis Frankel-Chaiet in Hollywood, Fla. “At least in Florida, at a closed board meeting, boards of directors may discuss ongoing or proposed disputes with the association`s lawyer`s staff or questions; In addition, the issues need to be openly debated. “A board member who refuses to acknowledge a duty of confidentiality may be limited to receiving this information. Although this board member may continue to participate in any matters that do not require verification or discussion of confidential information, this information may be denied if the board member refuses to sign a confidentiality agreement. Letters from confidential owners. The confidentiality rule is a little more nuanced when it comes to the communication of owners. See “Confidential Letters.” Violation of the Directors` Code of Ethics endangers not only the board member, but the entire board of directors. Remember that directors have an obligation and an obligation to act honestly and in good faith.
Failure to respect the confidentiality of the board of directors endangers the board member and/or the entire board of directors from being sued personally by an aggrieved party, and liability insurance directors and corporate officers cannot react in this case. If this were the case, the member of the board concerned or the board as a whole could be placed in an indefensible position of having to defend himself and bear the full costs of a successful claim against the director concerned or the entire board of directors for reasons of non-honesty and good faith because of the non-compliance with the confidentiality of the board.