§ 10A-20-16.03 — Officer Immune from Suit; Exception for Willful Misconduct, Fraud, or Gross Negligence; For-Profit Subsidiary Not Immune

Alabama § 10A-20-16.03

• Jurisdiction: Alabama
• Title 10A: Alabama Business and Nonprofit Entities Code
• Ch. 20: Special Purpose Entities
• Art. 16: Liability of Officers of Nonprofit Organizations

Text

Any noncompensated officer of a qualified entity shall be immune from suit and not subject to civil liability arising from the conduct of the affairs of the qualified entity except when the act or omission of the officer, which gives rise to a cause of action, amounts to willful or wanton misconduct or fraud, or gross negligence. Provided however, such immunity shall not, except to the extent as may otherwise be provided by law, extend to the qualified entity, to a for-profit subsidiary of the qualified entity, or to the officers of such for-profit subsidiary but only to the qualified entity’s officers as defined in this article. Nothing contained herein shall be construed to immunize the corporate entity or qualified entity for the acts or omissions of noncompensated officers as defined in this article.

Legislative History

(Acts 1987, No. 87-706, p. 1242, §3; §10-11-3; amended and renumbered by Act 2009-513, p. 967, §354.)