California Corporations Code

§ 2700

CORP § 2700 Effective Jan 1, 2015Div. 1.5 · Title 1 · Ch. 3

Statute text

(a)A director shall perform the duties of a director, including duties as a member of any committee of the board upon which the director may serve, in good faith, in a manner the director believes to be in the best interests of the social purpose corporation and its shareholders, and with that care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.

(b)In performing the duties of a director, a director shall be entitled to rely upon information, opinions, reports, or statements, including financial statements and other financial data, in each case prepared or presented by any of the following:

(1)An officer or employee of the social purpose corporation whom the director believes to be reliable and competent in the matters presented.

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Legislative history

Amended by Stats. 2014, Ch. 694, Sec. 42. (SB 1301) Effective January 1, 2015.