California Corporations Code

§ 5231

CORP § 5231 Effective Jan 1, 2010Div. 2 · Title 1 · Part 2 · Ch. 2 · Art. 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 that director believes to be in the best interests of the corporation 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:

(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. 2009, Ch. 631, Sec. 14. (AB 1233) Effective January 1, 2010.