Ted Cruz refusing to endorse Donald Trump at the RNC is a good example of failure of Duty of Loyalty. According to Duty of Loyalty, association board members can disagree but their actions must follow the majority or they need to resign. Cruz needs to resign from Republican party. As does any rogue association board members.
Key Takeaways:
- The second fiduciary duty imposed on directors is one of loyalty to the association.
- In the case of the Republicans, the Duty of Loyalty means Senator Cruz should resign from the Republican Party.
- Senator Cruz – a runner-up in the nomination process – spoke at the Republican Convention Wednesday night.
“” In the case of the Republicans, the Duty of loyalty means Senator Cruz,should resign from the republican party.””
http://www.scdgroup.net/2016/07/ted-cruz-republicans-association-law.html
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