How a Code of Conduct can benefit Association Boards

The backgrounds of community association board members are so varied with regard to their work experience, their personality, and the reasons that they are serving on the board that we find there is a huge benefit when all board members agree to a common Code of Conduct.

The Code of Conduct lays out the expectation of board members to basic ethical standards and professional conduct while they serve as a volunteer. Some of the items addressed are obvious such as refraining from using profanity, whereas some items are more subtle such as properly recording dissenting votes in the minutes. The Code of Conduct addresses board member delinquencies, personal agendas, and even felonies to name just a few.

Below for your use, please find a basic Code of Conduct that can be used as a starting point for your own association.

The Code of Conduct cannot violate the Association’s Declaration and Bylaws so this draft would need to be compared closely with your Association’s documents to remove any inconsistencies.

Code of Conduct
ABC Association, Inc.

WHEREAS, the governing documents of ABC Association, Inc. has delegated the authority and responsibility to govern the operations of the community to its Board of Directors, and

WHEREAS, the Board of Directors is responsible to appoint officers and committee members, and

WHEREAS, the volunteer leaders of the Association have the fiduciary duty and responsibility to set a standard and level of behavior that is conducive to the best interests of the entire community,

NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors of ABC Association, Inc. hereby adopts the following code of conduct, standards of behavior, ethical rules and enforcement procedures that are applicable to all Board members and volunteers serving the community:

1. The Board of Directors will use its best efforts at all times to make decisions that are consistent with high principles, and to protect and enhance the safety and property value of the residents.
2. No Board member or Committee member shall receive any compensation for serving on behalf of the Association, except for expense reimbursements approved by the Board of Directors or for specific functions as approved by a majority vote of the Board.
3. No Board member or Committee member shall solicit or accept, directly or indirectly, any gifts, gratuity, favor, entertainment, loan, or any other thing of monetary value made with the intent of influencing decisions or actions on any official matter, or from a person who is seeking to obtain contractual or other business or financial relations with the Association.
4. No contributions will be made to any political parties or political candidates by the Association.
5. No promise of anything not approved by the Board can be made to any subcontractor, supplier, or contractor during negotiations.
6. No drugs, alcohol, or substance abuse will be tolerated.
7. Any Board member convicted of a felony will voluntarily resign from his/her position.
8. Board members will immediately remove any volunteer from such positions as officers or committee positions if said person has been convicted of a felony.
9. Any Board member under investigation for a felony will request a leave of absence from the Board of Directors during the investigation and trial period.
10. Confidentiality of all Board members’ personal lives and all residents’ personal lives will be protected by Board and Committee members.
11. Language at Board meetings will be kept professional. It is understood that differences of opinion will exist. They should be expressed in a clear and business-like fashion. Personal attacks against owners, residents, officers, directors and managers are prohibited and are not consistent with the best interest of the community. Board and Committee members who violate this provision are subject to removal by a majority vote of the Board after three recorded instances of said violation. Board and Committee members who sign this Code of Conduct agree to these conditions and subject themselves to this Code.
12. No Board or staff member shall engage in any writing, publishing, or speech making that defames any other member of the Board or resident of the community.
13. Proper parliamentary procedure should be followed to have dissenting positions stated clearly within the official records of the Association.
14. No Board member or Committee member will knowingly misrepresent facts to the residents of the community for the sole purpose of advancing a personal cause or influencing the community to place pressure on the Board to advance a member’s personal cause.
15. No Board member or Committee member serving the community may use his/her position to enhance his/her financial status through the use of certain contractors or suppliers. Any potential conflict of interest must be exposed to the other volunteers, especially to the Board of Directors.
16. No Board member will seek to have a contract implemented that has not been approved by the Board.
17. No Board member will interfere with a contractor implementing a contract in progress. All communications with contractors will go through the Managing Agent or be in accordance with policy.
18. No Board member will interfere with the system of management established by the Board and the management company.
19. By virtue of serving on the Board and setting an example for all members of the community, the Board member covenants that she/he will resign from the Board in the event her/his assessment account becomes past due during their term on the Board more than sixty days unless otherwise approved by the Board of Directors. Should a member refuse to voluntarily resign for reasons related to delinquency, the Board of Directors has the right to action for removal by a majority vote of the homeowners.
20. New Board members will be given a copy of this code of conduct and will be asked to execute it to signify that they have received it, have read it and agree to abide by it.

The original resolution was ratified the day of February, 2010 at an open Board meeting where a quorum of the Board was present by a majority vote. The updated version of the Code of Conduct is effective immediately. By signature below, each Board member attests to his or her acceptance of the majority vote approving this Code of Conduct.

Click here to download this agreement in word: Code of Conduct

For more information about HOA and Condo Associations please visit this helpful website.

Source: Association Times