Part 3.

353 words·~2 min read·/nc/chapter-55a/3-8

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Part 3. Standards of Conduct.

§ 55A-8-30. General standards for directors.

(a)A director shall discharge his duties as a director, including his duties as a member of a committee:

(1)In good faith;

(2)With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and

(3)In a manner the director reasonably believes to be in the best interests of the corporation.

(b)In discharging his duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

(1)One or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented;

(2)Legal counsel, public accountants, or other persons as to matters the director reasonably believes are within their professional or expert competence; or

(3)A committee of the board of which he is not a member if the director reasonably believes the committee merits confidence.

(c)A director is not entitled to the benefit of subsection

(b)of this section if he has actual knowledge concerning the matter in question that makes reliance otherwise permitted by subsection

(b)of this section unwarranted.

(d)A director is not liable for any action taken as a director, or any failure to take any action, if he performed the duties of his office in compliance with this section.

(e)A director's personal liability for monetary damages for breach of a duty as a director may be limited or eliminated only to the extent provided in G.S. 55A-8-60 or permitted in G.S. 55A-2-02(b)(4), and a director may be entitled to indemnification against liability and expenses pursuant to Part 5 of Article 8 of this Chapter.

(f)A director shall not be deemed to be a trustee with respect to the corporation or with respect to any property held or administered by the corporation, including without limit, property that may be subject to restrictions imposed by the donor or transferor of such property. (1985 (Reg. Sess., 1986), c. 801, s. 29; 1993, c. 398, s. 1.)