Arkansas § 4-27-830 General standards for directors

Arkansas Statutes

§ 4-27-830 — General standards for directors

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

(1)in good faith;

(2)with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (3) in a manner he reasonably believes to be in the best interests of the corporation.

(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)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)legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the perso

Free access — add to your briefcase to read the full text and ask questions with AI

(a) A director shall discharge his duties as a director, including his duties as a member of a committee: (1) in good faith; (2) with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and (3) in a manner he reasonably believes to be in the best interests of the corporation. (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) 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) 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) a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence. (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. (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.

Arkansas § 4-27-830 (General standards for directors) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.