Practice Area

Director Fiduciary Duty — When the Board Acts in Its Own Interest

Texas Courts · BOC Ch. 22

Situation — How This Comes Up

Our HOA board is awarding contracts to companies owned by board members without disclosing the conflict.

What You Need to Know First

HOA directors in Texas owe fiduciary duties to the association and its members. Self-dealing — awarding contracts to related parties, misusing association funds, or acting for personal benefit — can support personal liability claims against individual directors.

Full Analysis

Texas HOA directors are fiduciaries. Undisclosed conflicts of interest, self-dealing contracts, and decisions made for personal benefit rather than the association’s interest can support breach of fiduciary duty claims against individual board members.

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