{"data":{"id":"us-dc/d.c.-code-29-306.42","jurisdiction":"us-dc","citation":"D.C. Code § 29-306.42","heading":"Standards of conduct for officers.","body":"(a)\nAn officer, when performing in such capacity, shall have the duty to act:\n(1)\nIn good faith;\n(2)\nWith the care that a person in a like position would reasonably exercise under similar circumstances; and\n(3)\nIn a manner the officer reasonably believes to be in the best interests of the corporation.\n\n(b)\nThe duty of an officer shall include the obligation to inform the:\n(1)\nSuperior officer to whom, or the board of directors or the committee thereof to which, the officer reports of information about the affairs of the corporation known to the officer, within the scope of the officer’s functions, and known to the officer to be material to the superior officer, board or committee; and\n(2)\nOfficer’s superior officer, another appropriate person within the corporation, or the board of directors, or a committee thereof, of any actual or probable material violation of law involving the corporation or material breach of duty to the corporation by an officer, employee, or agent of the corporation, that the officer believes has occurred or is likely to occur.\n\n(c)\nIn discharging his or her duties, an officer who does not have knowledge that makes reliance unwarranted may rely on:\n(1)\nThe performance of properly delegated responsibilities by one or more employees of the corporation whom the officer reasonably believes to be reliable and competent in performing the responsibilities delegated; or\n(2)\nInformation, opinions, reports, or statements, including financial statements and other financial data, prepared or presented by one or more employees of the corporation whom the officer reasonably believes to be reliable and competent in the matters presented, or by legal counsel, public accountants, or other persons retained by the corporation as to matters involving skills or expertise the officer reasonably believes are matters:\n(A)\nWithin the particular person’s professional or expert competence; or\n(B)\nAs to which the particular person merits confidence.\n\n(d)\nAn officer shall not be liable to the corporation or its shareholders for any decision to take or not to take action, or any failure to take any action, as an officer, if the duties of the office are performed in compliance with this section. Whether an officer who does not comply with this section has liability depends in such instance on applicable law, including those principles of § 29-306.31 that are relevant.","path":["Title 29. Business Organizations. [Enacted title]","Chapter 3. Business Corporations.","Subchapter VI. Directors and Officers.","Part D. Officers."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/29-306.42","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"cfd854bef8f699625e1bced2ff0c2c7332e137c4d865527b3ed086636d2c06f5","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-29-306.41","next":"us-dc/d.c.-code-29-306.43"},"notice":"GroundRules: Original legal text. Not legal advice."}