Alabama § 10A-1-3.24 Rights of Officers in Certain Cases

Alabama Statutes

§ 10A-1-3.24 — Rights of Officers in Certain Cases

Alabama § 10A-1-3.24

JurisdictionAlabama

Title 10AAlabama Business and Nonprofit Entities Code

Ch. 1General Provisions

Art. 3Formation and Governance

Div. CGoverning Persons and Officers

This text of Alabama § 10A-1-3.24 (Rights of Officers in Certain Cases) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 10A-1-3.24 (2026).

Text

(a)In discharging a duty or exercising a power, an officer of a domestic entity, in good faith and ordinary care, may rely on information, opinions, reports, or statements, including financial statements and other financial data, concerning the entity or another person and prepared or presented by:

(1)another officer or an employee of the entity;

(2)legal counsel;

(3)a public accountant or certified public accountant;

(4)an investment banker; or

(5)a person who the officer reasonably believes possesses professional expertise in the matter.

(b)An officer may not in good faith rely on the information described by subsection (a) if the officer has knowledge of a matter that makes the reliance unwarranted.

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(a) In discharging a duty or exercising a power, an officer of a domestic entity, in good faith and ordinary care, may rely on information, opinions, reports, or statements, including financial statements and other financial data, concerning the entity or another person and prepared or presented by:
(1) another officer or an employee of the entity;
(2) legal counsel;
(3) a public accountant or certified public accountant;
(4) an investment banker; or
(5) a person who the officer reasonably believes possesses professional expertise in the matter.
(b) An officer may not in good faith rely on the information described by subsection (a) if the officer has knowledge of a matter that makes the reliance unwarranted.