Arizona § 10-842 Standards of conduct for officers

Arizona Statutes

§ 10-842 — Standards of conduct for officers

Arizona § 10-842

Title 10Arizona Revised Statutes

Ch. 8DIRECTORS AND OFFICERS

Art. 4Officers

This text of Arizona § 10-842 (Standards of conduct for officers) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 10-842 (2026).

Text

A.If an officer has discretionary authority with respect to any duties, an officer's duties shall be discharged under that authority:

1.In good faith.

2.With the care an ordinarily prudent person in a like position would exercise under similar circumstances.

3.In a manner the officer reasonably believes to be in the best interests of the corporation.

B.In discharging duties, an officer is entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, if prepared or presented by either:

1.One or more directors, officers or employees of the corporation whom the officer reasonably believes to be reliable and competent in the matters presented.

2.Legal counsel, public accountants or other persons as to matters the officer

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A. If an officer has discretionary authority with respect to any duties, an officer's duties shall be discharged under that authority:

1. In good faith.

2. With the care an ordinarily prudent person in a like position would exercise under similar circumstances.

3. In a manner the officer reasonably believes to be in the best interests of the corporation.

B. In discharging duties, an officer is entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, if prepared or presented by either:

1. One or more directors, officers or employees of the corporation whom the officer reasonably believes to be reliable and competent in the matters presented.

2. Legal counsel, public accountants or other persons as to matters the officer reasonably believes are within the person's professional or expert competence.

C. An officer is not acting in good faith if the officer has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection B of this section unwarranted.