Liability of directors.

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No director of the corporation shall be personally liable to the corporation or its members for monetary damages for breach of fiduciary duty as a director unless:

A. the director has breached or failed to perform the duties of the director's office in compliance with Section 53-8-25.1 NMSA 1978; and

B. the breach or failure to perform constitutes willful misconduct or recklessness.

The provisions of this section shall, however, only eliminate the liability of a director for action taken as a director or any failure to take action as a director at meetings of the board of directors or of a committee of the board of directors or by virtue of action of the directors without a meeting pursuant to Section 53-8-97 NMSA 1978, on or after the date when the provisions of this section become effective.

History: 1978 Comp., § 53-8-25.2, enacted by Laws 1987, ch. 238, § 6.

ANNOTATIONS

Compiler's notes. — The phrase "the date when the provisions of this section become effective", in the last sentence, refers to April 9, 1987, the effective date of Laws 1987, Chapter 238.


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