General standards for directors

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  1. (a) A director shall discharge his duties as a director, including his duties as a member of a committee:

    1. (1) in good faith;

    2. (2) with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

    3. (3) in a manner he reasonably believes to be in the best interests of the corporation.

  2. (b) In discharging his duties a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

    1. (1) one (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented;

    2. (2) legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or

    3. (3) a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.

  3. (c) A director is not acting in good faith if he has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (b) of this section unwarranted.

  4. (d) A director is not liable for any action taken as a director, or any failure to take any action, if he performed the duties of his office in compliance with this section.


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