Arkansas § 4-27-830 - General standards for directors.

§ 4-27-830. General standards for directors.

A director shall discharge his duties as a director, including his duties as a member of a committee: in good faith; with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and in a manner he reasonably believes to be in the best interests of the corporation. 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: one (1) or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented; legal counsel, public accountants, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or a committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence. 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. 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.