If our friend wants my husband and I to be on the board of their church, will we be financially responsible if the church fails?

Can we be sued for any reason?

Asked on December 12, 2011 under Business Law, Texas

Answers:

Eric Eisen

Answered 8 years ago | Contributor

Typically the governing documents of a non-profit include promises to hold board members harmless and defend them if anyone makes a claim on account of a member's actions. Usually this promise is funded by an insurance policy. You should look for such a promise and such a policy. Even if the promise and policy do not exist, board members generally have no personal responsibility memrely because they are board members for debts of the organization. However, as a board member you owe a duties of honesty, loyalty and good faith to the organization and if you breach those duties you may be sued, depending.


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