Iowa § 504.843 Standards of conduct for officers

Iowa Statutes

§ 504.843 — Standards of conduct for officers

Iowa § 504.843

Title XIIBUSINESS ENTITIES

Ch. 504REVISED IOWA NONPROFIT CORPORATION ACT

This text of Iowa § 504.843 (Standards of conduct for officers) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 504.843 (2026).

Text

1.An officer, when performing in such capacity, shall act in conformity with all of the following:

a.In good faith.

b.With the care that a person in a like position would reasonably exercise under similar circumstances.

c.In a manner the officer reasonably believes to be in the best interests of the corporation and its members, if any.

2.In discharging the officer’s duties, an officer who does not have knowledge that makes reliance unwarranted is entitled to rely on any of the following:

a.The performance of properly delegated responsibilities by one or more employees of the corporation whom the officer reasonably believes to be reliable and competent in performing the responsibilities delegated.

b.Information, opinions, reports, or statements, including financial statements and oth

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1. An officer, when performing in such capacity, shall act in conformity with all of the
following:
a. In good faith.
b. With the care that a person in a like position would reasonably exercise under similar
circumstances.
c. In a manner the officer reasonably believes to be in the best interests of the corporation
and its members, if any.
2. In discharging the officer’s duties, an officer who does not have knowledge that makes
reliance unwarranted is entitled to rely on any of the following:
a. The performance of properly delegated responsibilities by one or more employees
of the corporation whom the officer reasonably believes to be reliable and competent in
performing the responsibilities delegated.
b. Information, opinions, reports, or statements, including financial statements and other
financial data, prepared or presented by one or more officers or employees of the corporation
whom the officer reasonably believes to be reliable and competent in the matters presented.
c. Legal counsel, public accountants, or other persons retained by the corporation as to
mattersinvolvingtheskillsorexpertisetheofficerreasonablybelievesarewithintheperson’s
professional or expert competence, or as to which the particular person merits confidence.
d. Inthecaseofreligiouscorporations, religiousauthoritiesandministers, priests, rabbis,
or other persons whose position or duties in the religious organization the officer believes
justify reliance and confidence and whom the officer believes to be reliable and competent in
the matters presented.
3. An officer shall not be liable as an officer to the corporation or its members for any
decision to take or not to take action, or any failure to take any action, if the duties of the
officer are performed in compliance with this section. Whether an officer who does not
comply with this section shall have liability will depend in such instance on applicable law,
including those principles of sections 504.832 and 504.901 that have relevance.