Code of Virginia § 13.1-1024.1. General standards of conduct for a manager.
199 words·~1 min read·
/va/title-13-1/chapter-12/13-1-1024-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. A manager shall discharge his or its duties as a manager in accordance with the manager's good faith business judgment of the best interests of the limited liability company.
B. Unless a manager has knowledge or information concerning the matter in question that makes reliance unwarranted, a manager 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 managers or employees of the limited liability company whom the manager believes, in good faith, to be reliable and competent in the matters presented;
2. Legal counsel, public accountants, or other persons as to matters the manager believes, in good faith, are within the person's professional or expert competence; or
3. A committee of the managers of which the manager is not a member if the manager believes, in good faith, that the committee merits confidence.
C. A person alleging a violation of this section has the burden of proving the violation.
D. For the purposes of this section only, the term "manager" shall be deemed to include any member that is participating in the management of the limited liability company.
1992, c. 574.