Difficulties could arise in a number of ways. A director should make sure that the company’s name is stated on any cheque, letter or invoice that he or she signs. He or she must also, as far as reasonably possible, make sure that the contents of reports, returns, certificates and financial statements that he or she signs are accurate. Where documents must be kept in specific ways or submitted to the Registrar of Companies from time to time, a director must ensure that these requirements are met.
Directors should not be reluctant to seek professional advice when they are unsure of something. It is also usual and sensible for the HOA to take out liability insurance that covers its directors and officers for possible liability.