Not Keeping Attorney Communications Confidential is a Huge Risk

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The ability of Boards and Board Members to obtain legal advice from their attorneys and keep the communications confidential so that no one else can use the communication against them is essential Board Management. Imagine an email from counsel advising that “your adversary is correct and has reasonable damages of over $250,000 because of XY&Z.” It is up to the attorney to make sure the client Board Members know what they can and cannot do when it comes to preserving the privilege in that communication and it is up to the Board Members to follow that advice and keep it privileged. Otherwise …

Liability Protection – Forming an LLC is Only the Beginning to Personal Risk

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Most people form a limited liability company (LLC) for their business in order to protect the owner members from personal liability. The LLC does offer such protection but only if legal requirements and formalities are satisfied and you actually run the business like a separate LLC. The trouble with this is that is may only costs a few hundred dollars or less to file the required papers to form the LLC, but figuring out what comes next can be expensive if you have to get advice from professionals on how to continue the protections of the LLC form of ownership. …

Risk of Bank Statements not being Readily Available to Board Members

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The WestEnd2000 Home Owners Association Board members just learned the hard way about the risk if each of them don’t keep an eye on the HOA’s money. Their Board President has been charged with stealing $35,000, leaving 24 homeowners high and dry. This New Rochelle New York Association did not have a best practice of maintaining bank statements in a place for Board members to watch their homeowners’ money. The President took advantage of the Board members and stole money from the account. Had the Board members been reviewing the checking account statement, they would have been able to stop …

Risk that Required Business Records are Deleted or Changed

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Whether you’re an LLC, nonprofit, community association or some other type of entity, you have lots of records at risk. With the advent of the digital age, the amount of records has skyrocketed. Consider the number of emails between Board members and others regarding Board business. Each email is separate business record which should either be maintained or deleted if allowed by law to do so. Each state has its own laws on what business records must be maintained and for how long. These laws are complicated and depend on a number of factors including your entity type, legal status …

Risk of Not Being Able to Effectuate a Litigation Hold

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When emails and other documents are created and kept in many different places, it is virtually impossible to effectuate a litigation hold. Entities with Boards without a framework for their emails and documents are at great risk. Five Board members with different email accounts all over the place. Documents being emailed, texted or otherwise exchanged. Drafts here. Drafts there. This is a Board attorney’s nightmare when the eventual lawsuit happens and the Board client must effectuate a litigation hold. In a lawsuit against NYC, a Federal Judge in Manhattan slammed the New York City Police Department for being “grossly negligent” …

Risk Of Commingling Your Email Accounts

Risk Of Commingling Your Email Accounts

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Hillary Clinton found out the hard way that using her personal email account for her business as Secretary of State was a risk and not a good idea.  She is now suffering the consequences. She could have avoided the whole mess by only using the government issued email address for her business.  Instead she commingled business and personal emails and caused herself a whole lot of trouble. Members of Boards are no different from Hillary Clinton.  Board members use their work and personal email accounts for their Board business; primarily because most entities don’t provide Boards and their members with …