board member education session 5 tuesday, october 29 your pit boss for this session is eileen...

Board Member Education

Session 5Tuesday, October 29

Your Pit Boss for this session is Eileen Castberg

So, now you’re on the BoardThe One-Hour Board MeetingFiduciary responsibilities of the Board

Fiduciary ObligationsFiduciary Obligations

Presented by:

Jeffrey T Weinland, CHA, CHE, CHAE University of Central Florida

Rosen College of Hospitality Management

Keys to a Successful ResortStack the Deck!

Session 4Tuesday, October 298:45 AM – 9:45 AM

Your Pit Boss for this session is Kimberly Stibbs-Menster

Paul GoodrichSPM Resorts

Scott Riddle1800MyCondo.com & Resort Synergy

Gregg McMurtrieCollections Unlimited

FiduciaryFiduciary

A Relationship of Trust, Confidence, and Duty

FiduciaryFiduciary

• from the Latin fiducia, meaning "trust”

• a legal relationship where one person is obligated to act in the best interests of others

• obligations are willingly accepted

• dependence and influence are created

• elements – care, loyalty, obedience

PartiesParties

Dependent - Influencer

Principal - Agent

Client - Attorney

Client - Broker

Beneficiary - Trustee

Heirs - Executors

Timeshare Owners - Board Members

BoardBoard MembersMembers

• represent the interests of all timeshare owners as a collective

• represent the interests of the organization

• as members of the organization, they represent their own interests, but only to the extent that those interests are shared by all owners

LiabilityLiability

• Personal – individuals are personally liable to preform their duties in representing the organization and the owners

• Corporate – the association is liable as a whole to ensure that policies and procedures are in place to protect the dependent parties

BoardBoard MemberMember DutiesDuties

• Legal Compliance

• Financial Oversight

• Governance

• Management

LegalLegal ComplianceCompliance

• Federal – US Code

• State – Statutes

• Local – Ordinances

• Governing Documents– Articles of Incorporation– Prospectus– Deed Restrictions– Rules & Regulations– Policies & Procedures

FinancialFinancial OversightOversight

• Budget & Planning

• Financial Management

• Reconcile Operational Activities to Financial Reports

• Internal Controls

GovernanceGovernance

• Vision

• Mission

• Organizational Objectives

• Moral & Ethical Decision Making Processes

ManagementManagement

• Day to day operating activities• Service delivery• Administrative activities• Operational & regulatory requirements• Delegation of activities to a professional

management company or employees• Note: activities can be delegated, but the

board members remain responsible and accountable for all fiduciary duties

FiduciaryFiduciary DecisionDecision TestingTesting

• Is it truth?

• Is it fair to all concerned?

• Does it benefit all concerned?

• Does it build positive relationships or add good will?

IdealIdeal BoardBoard MembersMembers

• Honest, Trustworthy, Courageous,

Moral & Ethical

• Able to interpret financial statements and operational reports

• Has an interest in the long-term success of the organization

• Willing & able to meet the requirements of service

EmployeesEmployees andand ManagementManagement CompaniesCompanies• Employees have fiduciary responsibilities

owed to their employers

• Management companies have fiduciary responsibilities owed to the organization which they contract with

• Neither replace the board members fiduciary responsibilities owned to owners or their organizations

Fiduciary ObligationsFiduciary Obligations

Questions?

&

Answers

Fiduciary ObligationsFiduciary Obligations

• Contact

Jeffrey T Weinland CHA, CHE, CHAEJeff@Weinland.us