What legal obligations do I as a board member of an association have to comply with?
July 17, 2024 | 50,00 EUR | answered by Roberta Lahn
Dear lawyer,
I am Luisa Jensen and recently became the chair of a non-profit organization. In this role, I am responsible not only for the management and organization of the organization, but also for ensuring compliance with legal requirements. Since I have no previous experience in this area, I am unsure of the specific legal duties I must adhere to as chair.
Currently, my main concern is to minimize potential liability risks and ensure that all legal requirements are met. I am worried that I may unintentionally violate the applicable laws governing non-profit organizations and face legal consequences as a result.
Therefore, I would like to ask you about the specific legal duties I must adhere to as chair of an organization. Are there specific laws or regulations that I must keep in mind? How can I ensure that all members and employees of the organization comply with legal rules? And what measures can I take to minimize my liability risk?
I would greatly appreciate your assessment and recommendations on this matter. I want to ensure that I fulfill my duties as chair in accordance with legal requirements correctly and conscientiously.
Thank you in advance for your assistance.
Sincerely,
Luisa Jensen
Dear Mrs. Jensen,
Thank you for your inquiry regarding your legal obligations as a board member of a non-profit organization. It is understandable that you are concerned about minimizing potential liability risks and ensuring that all legal requirements are met. I will provide you with an overview of the key legal duties that you should consider as a board member.
First and foremost, it is important to know that the legal duties of a board member of an organization are primarily governed by the Civil Code (BGB) and the Association Act. As a board member, you have a legal duty of care, which means that you must carry out your duties diligently and in the best interests of the organization. This means that you must actively manage and organize the organization and always act in the organization's best interest.
Furthermore, as a board member, you have a duty of loyalty to the organization. This means that you must prioritize the interests of the organization over your own and must not engage in any transactions that are detrimental to the organization. You must also ensure that all legal provisions, statutes, and organizational resolutions are complied with.
To minimize your liability risk, it is advisable to hold regular board meetings and document all important decisions in writing. Transparent communication with the members and employees of the organization is also important to ensure that all parties are aware of and comply with the applicable rules and regulations.
I also recommend staying informed about current legal developments in association law and seeking legal advice if you are unsure. It may also be beneficial to take out legal expenses insurance to be protected in the event of legal disputes.
In conclusion, it is important to fulfill your duties as a board member diligently and responsibly in order to minimize potential liability risks and successfully lead the organization. If you have any further questions or need assistance, I am at your disposal.
Sincerely,
Roberta Lahn
