Arkansas § 4-28-623 - Duties of managers.

§ 4-28-623. Duties of managers.

A manager owes to the unincorporated nonprofit association and to its members the fiduciary duties of loyalty and care. A manager shall manage the unincorporated nonprofit association in good faith, in a manner the manager reasonably believes to be in the best interests of the association, and with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances. A manager may rely in good faith upon any opinion, report, statement, or other information provided by another person that the manager reasonably believes is a competent and reliable source for the information. After full disclosure of all material facts, a specific act or transaction that would otherwise violate the duty of loyalty by a manager may be authorized or ratified by a majority of the members that are not interested directly or indirectly in the act or transaction. A manager that makes a business judgment in good faith satisfies the duties specified in subsection (a) if the manager: is not interested, directly or indirectly, in the subject of the business judgment and is otherwise able to exercise independent judgment; is informed with respect to the subject of the business judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and believes that the business judgment is in the best interests of the unincorporated nonprofit association and in accordance with its purposes. The governing principles in a record may limit or eliminate the liability of a manager to the unincorporated nonprofit association or its members for damages for any action taken, or for failure to take any action, as a manager, except liability for: the amount of financial benefit improperly received by a manager; an intentional infliction of harm on the association or one or more of its members; an intentional violation of criminal law; breach of the duty of loyalty; or improper distributions.