§ 5235. — 5235. (Amended by Stats. 2011, Ch. 442, Sec. 6.)

California § 5235.

• Jurisdiction: California
• Code CORP: Corporations Code - CORP
• Div.: 2.
• Title 1.: DIVISION 2. NONPROFIT CORPORATION LAW
• Part 2.: PART 2. NONPROFIT PUBLIC BENEFIT CORPORATIONS
• Ch. 2.: CHAPTER 2. Directors and Management
• Art. 3.: ARTICLE 3. Standards of Conduct

Text

(a)
The board may fix the compensation of a director, as director or officer, and no obligation, otherwise valid, to pay such compensation shall be voidable merely because the persons receiving the compensation participated in the decision to pay it, unless it was not just and reasonable as to the corporation at the time it was authorized, ratified or approved. The board shall take other actions that are required by subdivision (g) of Section 12586 of the Government Code, if applicable.
(b)
In the absence of fraud, any liability under this section shall be limited to the amount by which the compensation exceeded what was just and reasonable, plus interest from the date of
payment.

Legislative History

Amended by Stats. 2011, Ch. 442, Sec. 6. (AB 1211) Effective January 1, 2012.