US Laws, Codes, Statutes & Cases

53-4-18.1. Duties of directors.

A director shall perform his duties as a director, including his 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 or not opposed to the best interests of the association and with such care as an ordinarily prudent person would use under similar circumstances in a like position. In performing such duties, a director shall be entitled to rely on factual information, opinions, reports or statements including financial statements and other financial data in each case prepared or presented by:   

A.     one or more officers or employees of the association whom the director reasonably believes to be reliable and competent in the matters presented;   

B.     counsel, public accountants or other persons as to matters which the director reasonably believes to be within such persons' professional or expert competence; or   

C.     a committee of the board upon which the director does not serve, duly designated in accordance with a provision of the articles of incorporation or the bylaws as to matters within its designated authority, which committee the director reasonably believes to merit confidence, but the director shall not be considered to be acting in good faith if the director has knowledge concerning the matter in question that would cause such reliance to be unwarranted.