South Dakota § 47-17-7.1 Directors not liable for distribution in good faith reliance on financial statements or accountant's representation.

South Dakota Statutes

§ 47-17-7.1 — Directors not liable for distribution in good faith reliance on financial statements or accountant's representation.

South Dakota § 47-17-7.1

Title 47CORPORATIONS

Ch. 47-14BCOOPERATIVES--DIRECTORS, OFFICERS AND EMPLOYEES

This text of South Dakota § 47-17-7.1 (Directors not liable for distribution in good faith reliance on financial statements or accountant's representation.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 47-17-7.1 (2026).

Text

A director of a cooperative shall not be liable for any unauthorized dividend or distribution of assets if he relied and acted in good faith upon financial statements of the cooperative represented to him to be correct by the president or the officer of the cooperative having charge of his books of account, or stated in a written report by a certified public accountant failing to reflect the financial condition of the cooperative, nor shall he be so liable if in good faith in determining the amount available for any such dividend or distribution he considered the assets to be of their book value.

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A director of a cooperative shall not be liable for any unauthorized dividend or distribution of assets if he relied and acted in good faith upon financial statements of the cooperative represented to him to be correct by the president or the officer of the cooperative having charge of his books of account, or stated in a written report by a certified public accountant failing to reflect the financial condition of the cooperative, nor shall he be so liable if in good faith in determining the amount available for any such dividend or distribution he considered the assets to be of their book value.