This text of New York § 471 (Duty of directors and officers) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 471. Duty of directors and officers.
1.Directors and officers shall\ndischarge the duties of their respective positions in good faith and\nwith that degree of diligence, care and skill which a prudent person\nwould exercise under similar circumstances in like positions. In\ndischarging their duties, directors and officers, when acting in good\nfaith, may rely (a) upon financial statements of the credit union\nrepresented to them to be correct by the executive officer or the\nofficer of the credit union having charge of the books of account, or\nstated in a written report by an independent public or certified public\naccountant or firm of such accountants fairly to reflect the financial\ncondition of such credit union, and (b) upon reports required to be\nsubmitted to them by any provi
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§ 471. Duty of directors and officers. 1. Directors and officers shall\ndischarge the duties of their respective positions in good faith and\nwith that degree of diligence, care and skill which a prudent person\nwould exercise under similar circumstances in like positions. In\ndischarging their duties, directors and officers, when acting in good\nfaith, may rely (a) upon financial statements of the credit union\nrepresented to them to be correct by the executive officer or the\nofficer of the credit union having charge of the books of account, or\nstated in a written report by an independent public or certified public\naccountant or firm of such accountants fairly to reflect the financial\ncondition of such credit union, and (b) upon reports required to be\nsubmitted to them by any provision of this chapter or prepared in the\nordinary course of business by an officer or committee charged with the\nresponsibility therefor. Nothing in this section shall be deemed to\nrequire the directors to perform functions vested in any committee,\nofficer or other person pursuant to the provisions of any other section\nof this chapter.\n 2. An action may be brought against one or more directors or officers\nof a credit union to procure a judgment for the following relief:\n (a) To compel the defendant to account for his official conduct in the\nfollowing cases:\n (i) The neglect of, or failure to perform, or other violation of his\nduties in the management and disposition of the credit union's assets\ncommitted to his charge.\n (ii) The acquisition by himself, transfer to others, loss or waste of\nthe credit union's assets due to any neglect of or failure to perform,\nor other violation of his duties.\n (b) To set aside a conveyance, assignment or transfer of the credit\nunion's assets by one or more directors or officers, contrary to a\nprovision of law, where the transferee knew the purpose of the transfer.\n (c) To enjoin such a conveyance, assignment or transfer of the credit\nunion's assets by one or more of the directors or officers where there\nis good reason to apprehend that it will be made.\n 3. Subject to section six hundred thirty-one of this chapter, an\naction may be brought for the relief provided in this section by a\ncredit union or an officer, director or judgment creditor thereof.\n 4. This section shall not affect any liability otherwise imposed by\nlaw upon any director or officer.\n