For example, sponsors will tend to push for the deferral of repairs of . . .  Similarly, they will tend to favor cosmetic renovations over structural repairs. These measures will make the building look good, increasing the prospect of short-term sales. However, they often camouflage the real problems, and the delay in addressing these issues frequently results in greater expense down the road after the sponsor has already sold its units. Last year an appellate court held that this kind of conduct by sponsor board representatives could constitute self dealing."

The consequences of a finding of breach of fiduciary duty can be severe. First, the offending board member will be held personally liable in money damages for all pecuniary losses sustained as a result of his misconduct. Such judgments (and the attendant legal fees) are rarely, if ever, covered by directors and officer's liability insurance. In addition, courts are not shy about assessing punitive damages against those board members who breach this most exacting of moral obligations.
 
http://www.cooperator.com/articles/178/1/Is-Your-Board-Carrying-Out-Its-Fiduciary-Duty/Page1.html