N.Y. Limited Liability Company Law Law § 409 : Limited Liability Company Law — Management By Members Or Managers — Duties of managers

21 Apr 2015

Current through 2016 New York Laws, Chapters 1 to 237

(a) A manager shall perform his or her duties as a manager, including his or her duties as a member of any class of managers, in good faith and with that degree of care that an ordinarily prudent person in a like position would use under similar circumstances.
(b) In performing his or her duties, a manager 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 agents or employees of the limited liability company;
(2) counsel, public accountants or other persons as to matters that the manager believes to be within such person's professional or expert competence; or
(3) a class of managers of which he or she is not a member, duly designated in accordance with the operating agreement of the limited liability company, as to matters within its designated authority, which class the manager believes to merit confidence, so long as in so relying he or she shall be acting in good faith and with such degree of care, but he or she shall not be considered to be acting in good faith if he or she has knowledge concerning the matter in question that would cause such reliance to be unwarranted.
(c) A person who so performs his or her duties in accordance with this section shall have no liability by reason of being or having been a manager of the limited liability company.
N.Y. § 409