Alabama § 10A-1-3.21 - Rights of Governing Persons in Certain Cases.
Full text of Alabama Code of Alabama § 10A-1-3.21 — Rights of Governing Persons in Certain Cases., with citation guidance and answers to common questions.
§ 10A-1-3.21. Rights of Governing Persons in Certain Cases.
(a) In discharging a duty or exercising a power, a governing person, including a governing person who is a member of a committee, in good faith and with ordinary care, may rely on information, opinions, reports, or statements, including financial statements and other financial data, concerning a domestic entity or another person and prepared or presented by:
(1) an officer or employee of the entity;
(2) legal counsel;
(3) a public accountant or certified public accountant;
(4) an investment banker;
(5) a person who the governing person reasonably believes possesses professional expertise in the matter; or
(6) a committee of the governing authority of which the governing person is not a member.
(b) A governing person may not in good faith rely on the information described by subsection (a) if the governing person has knowledge of a matter that makes the reliance unwarranted.
(c) A governing person held liable on a claim is entitled to contribution from each of the other governing persons held liable on the same claim, as appropriate to achieve equity.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 10A-1-3.21
What does Code of Alabama § 10A-1-3.21 cover?
Section 10A-1-3.21 ("Rights of Governing Persons in Certain Cases.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 10A-1-3.21?
A common citation format is "Code of Alabama § 10A-1-3.21" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 10A-1-3.21 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.