US Laws, Codes, Statutes & Cases

§96.  Actions against directors and officers

A.  No action for damages against any director or officer for breach of his duty as a director or officer, including without limitation an action for gross negligence, but excluding any action covered by the provisions of Subsection B of this Section, shall be brought unless filed in a court of competent jurisdiction and proper venue within one year from the date of the alleged act, omission, or neglect, or within one year from the date that the alleged act, omission, or neglect is discovered or should have been discovered.

B.  No action for damages against any director or officer for intentional tortious misconduct, or for an intentional breach of the director's or officer's duty of loyalty, or for acts or omissions in bad faith, or involving fraud, or a knowing and intentional violation of law, shall be brought unless filed in a court of competent jurisdiction and proper venue within two years from the date of the alleged act or omission, or within two years from the date the alleged act or omission is discovered or should have been discovered.

C.  With respect to claims for which suit has not been filed, this Section shall be applied both retrospectively and prospectively; however, with respect to any alleged act, omission, or neglect for which the time period for bringing an action would otherwise be shortened by Subsection A of this Section, such action shall, in all events, be filed in a court of competent jurisdiction and proper venue on or before the earlier of the end of the time period for bringing such action prior to the enactment of this Section or September 1, 2000, and with respect to any alleged act, omission, or neglect for which the time period for bringing an action would otherwise be shortened by Subsection B of this Section, such action shall, in all events, be filed in a court of competent jurisdiction and proper venue on or before the earlier of the end of the time period for bringing such action prior to the enactment of this Section or September 1, 2001, in any case without regard to the date of discovery of the alleged act, omission, or neglect.

Acts 1997, No. 1101, §1, eff. July 14, 1997.