HOA - Fiduciary Duty

What does Fiduciary Duty mean?  How does it effect the Board and the Homeowners Association?  Where would you the homeowner find more information on this subject?  I have put together a quick explanation and bullets that should help.

The Board’s fiduciary responsibility is outlined in the governing documents.  Fiduciary duty simply means the board has an ethical and legal obligation to make decisions in the best interests of the entire association. That’s a small explanation for a very big responsibility.
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Fiduciary duty includes a duty of loyalty to the association, which means that board members should never use their position to take advantage of the association. They should never make decisions for the association that benefit themselves at the expense of the association and its members.

Fiduciary duty also includes the duty to exercise ordinary care. This means board members must perform their duties in good faith and in a manner they believe to be in the best interest of the association, with such care as an ordinary prudent person in a similar position under similar circumstances would use.
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In short, boards must act in the best interests of the association and act reasonably.
Board members fulfill their fiduciary duty by:

• Developing and using a formal budgeting process
• Establishing and adhering to budgetary guidelines
• Making sure the budgeting process reflects the wishes of the association members
• Promoting understanding and acceptance of the reserve accounts among the members
• Collecting sufficient fees to adequately operate the association
• Soliciting bids and negotiating appropriate contracts
• Authorizing expenditures