II. Honesty and Good Faith

A director has a duty to use care, skill, and diligence when carrying out official acts. This means that:

1. A director shall act honestly and in good faith, in a manner reasonably believed to be in the best interests of the cooperative, and with the care that a prudent person in a similar position would use under similar circumstances.
2. A director shall use his or her best efforts to keep apprised of legislation or regulations that affect the cooperative.
3. A director shall seek the knowledge necessary to make informed decisions in areas in which the director does not feel competent.
4. A director shall serve the interests of all member shareholders impartially and without bias.
5. A director shall advocate that the cooperative comply with applicable laws, codes, contracts, and agreements to which the cooperative is bound.
   1. A director is expected to make a diligent effort to become trained and skilled in the business of cooperative housing in such areas as finance, membership sale values, GHI rules, governance, and oversight.
   2. A director is expected to obtain a working knowledge of laws that regulate the cooperative, such as fair housing and minimum code restrictions that affect the cooperative and its operations.
   3. A director is entitled to rely upon information and reports presented by officers or other employees of the cooperative whom the director reasonably believes to be reliable and competent.
   4. A director is entitled to rely upon legal opinions, financial statements, and other information relating to matters that the director reasonably believes to be within the expertise of the person preparing the information.

To carry out this duty, here are some guiding rules to follow: