§7-6-22  Board Of Directors. –


Published: 2015

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TITLE 7

Corporations, Associations, and Partnerships

CHAPTER 7-6

Rhode Island Nonprofit Corporation Act

SECTION 7-6-22



   § 7-6-22  Board of directors. –

(a) The affairs of a corporation are managed by a board of directors. Directors

need not be residents of this state or members of the corporation unless the

articles of incorporation or the bylaws requires it. The articles of

incorporation or the bylaws may prescribe other qualifications for directors.



   (b) A director shall discharge his or her duties as a

director, including his or her duties as a member of a committee:



   (1) In good faith;



   (2) With the care an ordinarily prudent person in a similar

position would exercise under similar circumstances; and



   (3) In a manner he or she reasonably believes to be in the

best interests of the corporation.



   (c) In discharging his or her 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 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 or she

is not a member if the director reasonably believes the committee merits

confidence.



   (d) A director is not acting in good faith if he or she has

knowledge concerning the matter in question that makes reliance otherwise

permitted by subsection (c) unwarranted.



   (e) A director is not liable for any action taken as a

director, or any failure to take any action, if he or she performed the duties

of his or her office in compliance with this section.



History of Section.

(P.L. 1984, ch. 380, § 1; P.L. 1984, ch. 444, § 1; P.L. 1987, ch.

472, § 1.)

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