{"data":{"id":"us-nc/n.c.-gen.-stat.-55a-8-42","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 55A-8-42","heading":"Standards of conduct for officers.","body":"(a)\tAn officer with discretionary authority shall discharge his duties under that authority:\n(1)\tIn good faith;\n(2)\tWith the care an ordinarily prudent person in a like position would exercise under similar circumstances; and\n(3)\tIn a manner the officer reasonably believes to be in the best interests of the corporation.\n(b)\tIn discharging his duties, an officer is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:\n(1)\tOne or more officers or employees of the corporation whom the officer reasonably believes to be reliable and competent in the matters presented; or\n(2)\tLegal counsel, public accountants, or other persons as to matters the officer reasonably believes are within the person's professional or expert competence.\n(c)\tAn officer is not entitled to the benefit of subsection (b) of this section if the officer has actual knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (b) of this section unwarranted.\n(d)\tAn officer is not liable for any action taken as an officer, or any failure to take any action, if the officer performed the duties of his office in compliance with this section.\n(e)\tAn officer may be entitled to immunity under Part 6 of Article 8 of this Chapter or to indemnification against liability and expenses pursuant to Part 5 of Article 8 of this Chapter. (1985 (Reg. Sess., 1986), c. 801, s. 29; 1993, c. 398, s. 1.)","path":["Chapter 55A North Carolina Nonprofit Corporation Act.","Article 8. Directors and Officers.","Part 4. Officers."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_55A/GS_55A-8-42.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:02Z","sha256":"6eca74da112e60650b7f6a7948f2fa8184e19dbeffede68932376fd1680eabbb","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-55a-8-41","next":"us-nc/n.c.-gen.-stat.-55a-8-43"},"notice":"GroundRules: Original legal text. Not legal advice."}