Arkansas Code of 1987 (2023)
Title 4 - BUSINESS AND COMMERCIAL LAW (§§ 4-1-101 — 4-119-105)
Subtitle 3 - CORPORATIONS AND ASSOCIATIONS (§§ 4-25-101 — 4-38-1203)
Chapter 27 - BUSINESS CORPORATION ACT OF 1987 (§§ 4-27-101 — 4-27-1908)
Subchapter 8 - DIRECTORS - OFFICERS - MEETINGS - STANDARDS OF CONDUCT - INDEMNIFICATION (§§ 4-27-801 — 4-27-850)
Part C - STANDARDS OF CONDUCT (§§ 4-27-830 — 4-27-834)
Section 4-27-830 - General standards for directors

Universal Citation:
AR Code § 4-27-830 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (a) A director shall discharge his duties as a director, including his duties as a member of a committee:
    • (1) in good faith;
    • (2) with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and
    • (3) in a manner he reasonably believes to be in the best interests of the corporation.
  • (b) In discharging his duties a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:
    • (1) one (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented;
    • (2) legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or
    • (3) a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.
  • (c) A director is not acting in good faith if he has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (b) of this section unwarranted.
  • (d) A director is not liable for any action taken as a director, or any failure to take any action, if he performed the duties of his office in compliance with this section.

Acts 1987, No. 958, § 64-818.


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