2-19-25 Fiduciary Duties of BOD

Deerfield News Connection

February 19, 2025

Run for the HOA Board and Help Shape the Future of Deerfield Resort

Deerfield Resort is at an exciting turning point. With our transition to a homeowner-run HOA, we now have a chance to develop inclusive and community-focused leadership for all homeowners.

This is your chance to be part of something special — to contribute to the development of our community and ensure that Deerfield Resort continues to be a place where we all prosper together. It will be crucial to elect the most qualified candidates to represent our community.

How Can You Help

Run for the Board: If you have a passion for helping our community succeed and are willing to work together with your neighbors. Submit your nomination by March 5th. The nomination forms will soon be posted at www.deerfieldresorthoa.com.

Encourage Your Neighbors: Spread the word! A strong HOA is built on engaged homeowners. The more voices we have, the better our future will be.

Vote will commence on April 1st: Ensure your voice is heard in the online election. Your participation matters!

The schedule for nominations and voting above was established at the Court Hearing on February 13th.

What Does Serving on the Board Mean?

Board members are responsible for setting policies, overseeing finances, and maintaining the integrity of our community.

Acting in the best interest of the HOA (Duty of Good Faith, Duty of Loyalty, Duty of Care)
Ensuring transparency and fairness in all decisions
Collaborating with neighbors to keep Deerfield Resort a safe, thriving, and well-managed community

Summaries of Tennessee laws help potential candidates understand the requirements for serving on the HOA board.

Fiduciary Duties

Board members have key responsibilities including Fiduciary Duties and Record Keeping. Acting as a fiduciary is the highest legal standard of duty. Under Tennessee law (TN Code § 48-58-301), board members must prioritize the HOA’s interests over their own. Elected board members are trusted to manage the property, finances, and safety standards of the HOA community. Nonprofit boards/board members must adhere to these fiduciary duties:

Duty of Good Faith – Board members must adhere to the organization’s mission and governing documents, ensuring all funds are used lawfully and comply with state and federal laws.

Duty of Loyalty – Board members must prioritize the organization's interests and goals over personal or familial interests, avoiding any conflicts of interest.

Duty of Care – Board members must act carefully, develop reasonable policies, oversee finances, stay informed on issues, and attend meetings.

Conflict of Interest

A conflict of interest occurs when a board member has a significant financial or substantial relationship in a transaction. Consider potential Conflicts of Interest when voting for Board of Directors candidates.

A Material Financial Interest occurs when a board member benefits personally from a transaction, potentially compromising their objectivity in voting.

A Material Relationship refers to situations where a board member's family, friend, or business associate could personally benefit from a transaction, potentially affecting the board member's objectivity and judgement.

Under Tennessee Code, a board member or officer of the board who knowingly or negligently breaches their fiduciary duties may be held personally liable to the HOA for any resulting harm.

Why Get Involved?

Protect and maintain property values.
Ensure transparent and ethical decision-making.
Support a safe and well-maintained community.
Be a voice for all homeowners and create lasting change

If you have expertise and prior experience on a BOD or if you are dedicated to promoting a cohesive and unified community, consider candidacy for the Homeowners Association (HOA) board. There is a significant amount of work ahead, but with the appropriate property owners representing the various areas of Deerfield Resort working together, we can build a safe, thriving, and well-managed community.