Ark. Code § 4-27-830 : BUSINESS AND COMMERCIAL LAW — CORPORATIONS AND ASSOCIATIONS — BUSINESS CORPORATION ACT OF 1987 — DIRECTORS - OFFICERS - MEETINGS - STANDARDS OF CONDUCT - INDEMNIFICATION — STANDARDS OF CONDUCT —27-830 - General standards for directors

(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.

Ark. Code § 4-27-830

Acts 1987, No. 958, § 64-818.
SECTIONS