{"data":{"id":"us-ky/krs-272a.8-180","jurisdiction":"us-ky","citation":"KRS 272A.8-180","heading":"Fiduciary standards of directors -- Conflict of interest.","body":"Except as otherwise provided in KRS 272A.8-190:\n(1) The fiduciary duties a director owes to the limited cooperative association include\nthe duty of loyalty and the duty of care set forth in subsections (2) and (3) of this\nsection;\n(2) A director's duty of loyalty to the limited cooperative association includes but is not\nlimited to the following:\n(a) To account to the association and hold as trustee for it any property, profit, or\nbenefit derived by the director in the conduct and winding up of the\nassociation's business or derived from a use by the director of association\nproperty, including the appropriation of a opportunity;\n(b) To refrain from dealing with the association in the conduct or winding up of\nassociation business as or on behalf of a party having an interest adverse to the\nassociation; and\n(c) To refrain from competing with the association in the conduct of association\nbusiness before the dissolution of the association;\n(3) A director's duty of care to the limited cooperative association and th e members\nthereof in the conduct and winding up of association business includes but is not\nlimited to acting with the care that a reasonable person in a like position would\nexercise under similar circumstances and in a manner that the director reasonably\nbelieves to be in the best interests of the association;\n(4) A director does not violate a duty or obligation under this subchapter or under the\nassociation's organic rules merely because the director's conduct furthers the\ndirector's own interest; and\n(5) A director may lend money to, act as a surety, guarantor, or endorser for, guarantee\nor assume one (1) or more specific obligations of, provide collateral for and transact\nother business with the limited cooperative association, and as to each loan or\ntransaction the rights and obligations of the director are the same as those of a\nperson who is not a director, subject to other applicable law.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41047","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:22Z","sha256":"c67f3f01e826046479cd7ad4995006f4e3223bb141dea51c4c8d9b0caa70147f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272a.8-170","next":"us-ky/krs-272a.8-190"},"notice":"GroundRules: Original legal text. Not legal advice."}