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
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