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Due Diligence
Due Diligence. Due diligence or the duty to investigate is one of the fiduciary duties of directors. Condominium and homeowner association boards must make reasonable inquiry before making a decision. This does not mean that they must personally inspect water leaks or personally talk to vendors--they can rely on information and advice from others.

Competent Advice. Board members may rely on the advice of persons they believe to be reliable and competent in the matters being presented. Corp. Code §7231(b). This means boards can rely on managing agents for management issues, CPAs for tax issues, attorneys for legal issues, etc.

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