Sec. 10.50.135. Duty of care.

182 words·~1 min read·/ak/title-10/chapter-50/10-50-135·

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(a)A person who is a manager or a managing member of a limited liability company shall perform the duties of management in good faith, in a manner the person reasonably believes to be in the best interests of the company, and with the care, including reasonable inquiry, that an ordinarily prudent person in a like position would use under similar circumstances. Except as provided in

(b)of this section, the person is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, in each case prepared or presented by

(1)an employee of the company whom the person reasonably believes to be reliable and competent in the matters presented; or

(2)counsel, public accountants, or other professionals or experts as to matters that the person reasonably believes to be within the professional's or expert's competence.

(b)A person is not acting in good faith under

(a)of this section if the person has knowledge concerning the matter in question that makes reliance otherwise permitted by

(a)of this section unwarranted.