[Foundation-l] The fallacy of power

[Delirium]

Mike Godwin wrote:
> Samuel writes:
>   
>> Trusting someone to give good topical advice and trusting them to  
>> make good
>> long-term decisions and remain true to their principles are rather
>> different.
>>     
>
> Well, sure, but that's why the law imposes fiduciary responsibilities  
> on the Board of Trustees (even the appointed ones). The checks and  
> balances you are concerned about are built into the law itself.
>   

Not very effective ones, though. Firstly, an uncompensated officer of a 
nonprofit organization acting in good faith is extremely difficult to 
sue, due to explicitly granted immunities in various federal and state 
laws. Even if they breach their fiduciary duty, as long as it wasn't 
done maliciously or recklessly (or you can't prove that it was), there's 
not much that can be legally done about it. And secondly, suing a board 
member in court is a pretty empty threat anyway---even if we somehow 
could prevail in the suit, it would probably damage us more than them.

Practical checks and balances, on the other hand, can come in the form 
of internal oversight, policies, and mechanisms for adding a removing 
members to the board.

-Mark