Some boards only engage legal counsel when a situation has become dire. Others are overly cautious and all the attorney at the drop of a hat, but unusually high legal bills often lead to membership scrutiny.

More often than not, however, boards don't consult legal counsel enough. It's a dangerous way to do business since every board action is viewed through a prism of reasonableness. Failing to obtain legal advice on subjects outside a board's expertise might cast it as unreasonable in the eyes of a judge or mediator.

Originally Published by Becker & Poliakoff, January 2021

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.