§ 12371. — 12371. (Amended by Stats. 2009, Ch. 631, Sec. 48.)

California § 12371.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 3.
• Title 1.: DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES
• Part 2.: PART 2. COOPERATIVE CORPORATIONS
• Ch. 2.: CHAPTER 2. Directors and Management
• Art. 3.: ARTICLE 3. Standards of Conduct

Text

(a)
A director shall perform the duties of a director, including duties as a member of any committee of the board upon which the director may serve, in good faith, in a manner such director believes to be in the best interests of the corporation and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
(b)
In performing the duties of a director, a director shall be entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by:
(1)
One or more officers or employees of the corporation
whom the director believes to be reliable and competent in the matters presented;
(2)
Counsel, independent accountants or other persons as to matters which the director believes to be within such person’s professional or expert competence; or
(3)
A committee upon which the director does not serve that is composed exclusively of any or any combination of directors, persons described in paragraph (1), or persons described in paragraph (2), as to matters within the committee’s designated authority, which committee the director believes to merit confidence, so long as, in any such case, the director acts in good faith, after reasonable inquiry when the need therefor is indicated by the circumstances and without knowledge that would cause such reliance to be unwarranted.
(c)
A person who performs the duties of a director
in accordance with subdivisions (a) and (b) shall have no liability based upon any alleged failure to discharge the persons’s obligations as a director.

Legislative History

Amended by Stats. 2009, Ch. 631, Sec. 48. (AB 1233) Effective January 1, 2010.