D.C. Code § 29-1119: Duties of manager.
Where this section sits in the code
- Title 29. Business Organizations. [Enacted title]
- Chapter 11. Unincorporated Nonprofit Associations.
(a)
A manager shall owe to the unincorporated nonprofit association and to its members the fiduciary duties of loyalty and care.
(b)
A manager shall manage the unincorporated nonprofit association in good faith, in a manner the manager reasonably believes to be in the best interests of the association, and with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances. A manager may rely in good faith upon any opinion, report, statement, or other information provided by another person that the manager reasonably believes is a competent and reliable source for the information.
(c)
After full disclosure of all material facts, a specific act or transaction that would otherwise violate the duty of loyalty by a manager may be authorized or ratified by a majority of the members that are not interested directly or indirectly in the act or transaction.
(d)
A manager that makes a business judgment in good faith satisfies the duties specified in subsection (a) of this section if the manager:
(1)
Is not interested, directly or indirectly, in the subject of the business judgment and is otherwise able to exercise independent judgment;
(2)
Is informed with respect to the subject of the business judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and
(3)
Believes that the business judgment is in the best interests of the unincorporated nonprofit association and in accordance with its purposes.
(e)
The governing principles in a record may limit or eliminate the liability of a manager to the unincorporated nonprofit association or its members for damages for any action taken, or for failure to take any action, as a manager, except liability for:
(1)
The amount of financial benefit improperly received by a manager;
(2)
An intentional infliction of harm on the association or one or more of its members;
(3)
An intentional violation of criminal law;
(4)
Breach of the duty of loyalty; or
(5)
Improper distributions.
Collected 2026-08-29T05:44:07Z. Source file · JSON