{"data":{"id":"us-ar/ark.-code-ann.-4-27-830","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-27-830","heading":"General standards for directors.","body":"(a) A director shall discharge his duties as a director, including his duties as a member of a committee:\n(1) in good faith;\n(2) with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and\n(3) in a manner he reasonably believes to be in the best interests of the corporation.\n(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:\n(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;\n(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\n(3) a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.\n(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.\n(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.","path":["Title 4 Business and Commercial Law","Subtitle 3. Corporations and Associations","Chapter 27 Business Corporation Act of 1987","Subchapter 8 — Directors — Officers — Meetings — Standards of Conduct — Indemnification","Part C: Standards of Conduct"],"source_url":"https://archive.org/download/gov.ar.code/release78.2020.11.06/gov.ar.code.title.04.odt","current_through":"2020-11-06","vintage":"Arkansas Code Release 78 (2020-11), retrieved 2026-09-17; absent from the newer snapshot, which serves other sections of this chapter, so it may since have been repealed or amended","retrieved_at":"2026-09-17T21:07:03Z","sha256":"766bebfa5b7d9a05bc03ea096d2ccb67fcd091d1c68db40dbb67f8144a166489","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-27-825","next":"us-ar/ark.-code-ann.-4-27-831"},"notice":"GroundRules: Original legal text. Not legal advice."}