§18-865. Liability of directors - Findings of Legislature.
115 words·~1 min read·
/ok/title-18-corporations/18-865·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Legislature finds that nonprofit corporations serve important functions in providing services and assistance to persons in the state and that in order for these nonprofit corporations to function effectively, persons serving on the board of directors should not be subject to vicarious liability for the negligence of corporate employees or other directors. The Legislature finds that potential exposure to vicarious liability has a detrimental effect on the participation of persons as directors of nonprofit corporations and that providing immunity to directors of such corporations for certain types of liability will promote the general health, safety and welfare of citizens in the state.
Added by Laws 1986, c. 195, § 1, eff. Nov. 1, 1986.