California Corporations Code

§ 309

CORP § 309 Effective Sep 27, 1987Div. 1 · 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 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.

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Legislative history

Amended by Stats. 1987, Ch. 1203, Sec. 2. Effective September 27, 1987.