TRUSTEES’ STANDARD OF CONDUCT
The duty of care describes the level of competence expected of a board member. It is commonly expressed as the “care that an ordinarily prudent person would exercise in a like position under similar circumstances.”
This entails:
- regularly attending and participating in board meetings;
- reading, reviewing, and questioning materials involving the institution, especially board minutes and reports;
- having a fiduciary responsibility for the institution’s assets and finances; and
- using one’s own judgment in analyzing matters that affect the institution.
The duty of loyalty calls for a trustee to give undivided allegiance to the organization when making decisions concerning it.
A trustee
- should not seek to benefit personally from any business derived from the institution without fully disclosing this to the board and
- must avoid conflicts of interest or their appearance. Acts of self-dealing constitute a breach of fiduciary responsibility that could result in personal liability.
The duty of obedience requires trustees to be faithful to the organization’s mission and by-laws. A trustee has a
- responsibility to insure the institution’s resources are dedicated to fulfilling its mission and
- duty to ensure that the institution complies with all applicable laws and does not engage in any unauthorized activities.
Having an interest in a bank appears to be a conflict of interest. A bank can make money from construction loans on capital improvements on college assets. A bank is fundamentally at conflict of interest in making decisions on how to best spend college money. Both Robert Nystuen and Shannon Lund have a conflict of interest.
Being faithful to the college mission and by-laws and insuring the institution’s resources are dedicated to fulfilling its mission and requires academic experience and qualifications. Neither Tom Harding, John Phelps, nor Shannon Lund has the qualifications for this job.
Therefore, no incumbent is qualified to hold the position of trustee at FVCC.