CodeofEthics

Topromoteastrongandwell-runassociation,everymemberofthe boardof directorsshouldberequiredtosigna codeof ethicsdocumentatthebeginningofeverytermserved.The codeof ethicsshouldserveasaguidetoproperconductandgoodgovernance.

Asigned codeof ethicsisabindingagreementbetweenanewlyelectedboardmemberandtheassociationthatheorsheserves.Theboardmembermustadheretoalloftherequirementslaidoutinthedocument.

Afewoftherequirementsoutlinedinastrong codeof ethicsinclude:

  • Actinghonestly,honorably,fairly, andinastraightforwardmannerduringtheelection;
  • Conductingoneselfinaprofessionalandbusinesslikemanneratmeetingsandinallinteractionswithowners,management,contractors, orotherwise;
  • Committingthenecessaryeffortstoaccomplishallrequiredduties,includingsharingmeetingagendas,obtainingadviceofexpertswhennecessary, and becomingwell-informedonpertinentissues;
  • Reviewingallmanagementandcontractualagreementswithserviceproviders;
  • Contributingtotheactivemonitoringofthephysicalstateofmaintenanceandrepairofcommonandlimitedcommonelementsofthe association; and
  • Monitoringthefinancialhealthoftheassociationthroughsupportingthefundingofthereservefundandthroughcloseexaminationofthebalancestatements.

Reviewthesampleonthenextpageforanideaofhowathoroughdocumentmightlook.

CodeofEthics

[Samplefor incoming directorof association board]

Ihaveconsentedtoactasa directorofthe corporationandIhavereadour association’s bylaws,CC&Rs, and rules.

Asanelected directortothe board,Ipledgetodoallofthefollowing:

HonestyandGoodFaith:Iwillacthonestlyandingoodfaith.IwilldonothingtoviolatethetrustoftheunitownersIserve.Iwillacthonorably,fairly, andinastraightforwardmannerinthecourseofanelection.Ishallnotseekelectionasa directorbyattackingthereputationofanyotherperson.

Care,Diligence, andSkill:Iwillexercisethedegreeofcare,diligence, andskillofareasonablyprudentpersonincomparablecircumstances.Iwillmakeaconcertedefforttoattendall boardandowners’ meetings.Iwillactresponsiblyandwithduediligencetobecomefamiliarwiththeaffairsofthe corporationandtoupholdandcomplywithits declaration, bylaws,CC&Rs, rules,resolutions,policies,agreements, andrequirementsofrelevantlegislation.

Confidentiality:Iwillnotdisclosetoanyperson(includingmyspouse)informationdecidedbythe boardtobeconfidentialorprivilegedorwhichreasonablyoughttobedeemedconfidential.Whenindoubt,Iwillrequest a determinationbyaresolutionofthe board.

GoodConduct:Atalltimes,Iwillconductmyselfinaprofessionalandbusinesslikemanneratmeetingsofdirectorsorowners.

  • Iwillapproachall boardissueswithanopenmind,preparingtomakethebestdecisionsonbehalfofthe corporation.
  • Iwillavoidshouting,interrupting,monopolizingdiscussions,rudecomments, anddisruptions.Iwillactethicallywithintegrityandinaccordancewithlegalcriteria.
  • Iwillcomplywithprinciplesofgoodgovernanceandproceduralrulesoforder.
  • Iwillattempttopreventorminimizeconflictanddisruptionandwillpromotegoodrelations among the people involvedinourcommunity.
  • Iwillrefrainfromexpressinganydetrimentalsupposition or erroneousordefamatorystatementaboutthe associationoranyowner,resident,director,officer,manager,staff, orcontractorofthe corporation.
  • Ishallpubliclysharedetrimentalinformation only inamanner that isaccurate,unbiased, and nonmalicious.
  • Iwillabidebydecisionsofthemajorityofthe directorseventhoughImaydisagreeandwillnot deprecate directorswithwhomIdisagree.However,Ireservetherighttoexpressmyownviewstoowners regarding nonconfidentialissuesinamannerthatalwayscomplieswithgoodconductpractices.
  • Iwilltreatotherboardmembers,homeowners,vendors,contractors, andmanagementcompanyrepresentativeswithprofessionalcourtesyandrespectatalltimes.

AbuseofProxies:Whencollectingproxies,Iwillnotmakeanyfalse,misleading,fraudulent, ordefamatorystatements.IwillfairlyinformtheproxygrantorhowIintendtoexerciseanyvotewithrespecttotheproxy.

PerformanceofDuties:Iwillcommitthenecessaryefforts,willexercisetheappropriateleadership, andwillassumesuchdutiesasmayreasonablyberequiredtofulfillmyroleasa directoror officer.

  • Iwillparticipateinconductingthe board’sbusinessintheformofresolutions,policies,rules, orbylawsasthecircumstancesrequire.
  • Iwillbecomewellinformedonissuesandagendaitemsinadvanceofmeetings.
  • Iwillobtaintheadviceofexpertsifandwhenappropriate,includingattorneys,constructionexperts, andothers.
  • Iwillreadthestatestatutesatleastonceayearwhentheyearlyamendmentsbecomeavailableandtocomplywiththelaw.
  • Iwillmakecertainthatagendasarepostedanddistributedtoallmembersinadvanceof associationmeetingsandthatminutesaretakenandmaintainedofallmeetingsasrequiredbylaw.
  • Iwillensurethatallboardmeetingsareheldofficiallyandinamannerthatisopenandwelcoming to allothermembersandowners.
  • Iwillattendallboardmeetingsandhomeownermeetingsunlessitisabsolutelynotpossibletoattend.
  • Iwillprovidemembersofthe associationwithane-mailaddresssothatmemberscanmakedirectcontactwithmeifrequired.
  • Iwillreadthemanagementagreementineffectbetweenour associationandmanagementcompanysothatIamawareofthemanagementcompany’scontractualresponsibilitiesandthoseareaswhereithasnocontractualresponsibility.
  • If applicable, Iwillassistthe boardtosupervise,monitor, anddirecttheongoingdailymanagementofthe corporationbythepropertymanager.
  • Iwillhelpfacilitatetheannualelectionsforthe boardof directorsaccordingtothe association’s rules, bylaws, andstatelaw.
  • IwillreadallwrittencontractswithcontractorsandvendorssothatIamawareoftheirobligationsaswellasthe association’sobligations.
  • Iwillcontributetotheactivemonitoringofthephysicalstateofmaintenanceandrepairofthecommonandlimitedcommonelementsofthe association.
  • Iwillalwaysactproperlywithinthescopeofmyauthorityandinresponsetothewillofthe board. Iwillrefrainfromautocraticgovernance,andIwillneverexerciseauthorityasa boardmemberexceptwhenactinginameetingofthe boardorasIamdelegatedtodobythe board.

MonitorFinancialHealth:Iwillpayparticularattentiontomonitorthefinancialhealth,physicalstateofmaintenanceandrepair,management,administration,appearance, andwelfareofthe corporation.

  • Iwillsupportrequiredfundingofthereservefundandanappropriatefundingplantofulfillthecriteriaofthe corporation’scurrent reserve fund studyor review.
  • Iwillassistinpreparingorreviewing the corporation’sannual budgetinamannerthatappropriatelyreflectstheactualfinancialneedsofthe corporation,regardlessofowners’ complaintswhenitbecomesnecessarytoincreasecommonexpenses.
  • Iwillcontributetotheadoptionofarealisticannualbudgeteachyearinordertoavoidthehardshipandliabilityassociatedwithspecialassessments.
  • Iwillensurecommonexpensesarecollectedontimeorlienedwithinthestatutoryperiod.
  • Iwillmonitortheinvestments,bankaccounts,interim, andyear-endfinancialstatements.
  • Iwillcarefullyreview contract proposals and quotes inordertoassistinnegotiatingpreferredcontractualtermsforservicesrenderedtothe corporationatabeneficialcost.
  • Iwillpaymyassessmentsbeforetheybecomedelinquentandstrictlycomplywiththegoverningdocumentsofourassociation.
  • Iwillhonormyfiduciarydutytothe associationatalltimesbyplacingthe association’sinterestsabovemyownpersonalinterests.

Ihavecarefullyreadandunderstoodthispledgeandpromisetohonoritasamemberofthe boardof directorsofour association.

DATEDat______(time)this______dayof______(month),20_____.

Witness / Director’s Signature
Print Name / Print Name

Samplecourtesy of Association Evaluation LLC.