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DUE DILIGENCE Due Diligence is one of the fiduciary duties of directors. To fulfill their duty of care and diligence, directors must attend and participate in meetings so they can be informed about the association's business. Reliance on Others. Boards must make reasonable inquiry before making a decision. This does not mean that they must personally inspect water leaks or personally talk to vendors. Boards may rely on their managing agents, employees, attorneys, CPAs, consultants, etc. for information. This is true unless director suspects the information is unreliable. Corp. Code §7231(b) Directors are protected from personal liability by the business judgment rule Updated 8/9/2008 | |
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