California Corporations Code
§ 309
CORP § 309 Effective Sep 27, 1987Div. 1 · Title 1 · Ch. 3
Statute text
View on leginfo.ca.gov(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 such director believes to be in the best interests of the corporation and its shareholders and with such 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 on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by any of the following:
(1)One or more officers or employees of the corporation whom the director believes to be reliable and competent in the matters presented.
…
Legislative history
Amended by Stats. 1987, Ch. 1203, Sec. 2. Effective September 27, 1987.