Utah § 3-1-13.3 - General standards of conduct for directors and officers.

Full text of Utah Utah Code § 3-1-13.3 — General standards of conduct for directors and officers., with citation guidance and answers to common questions.

§ 3-1-13.3. General standards of conduct for directors and officers.

3-1-13.3. General standards of conduct for directors and officers.

(1)

A director shall perform his duties as a director, and as a member of a committee, and each officer with discretionary authority shall perform his duties under that authority:

(a)	in good faith;

(b)	with the care an ordinarily prudent person in a similar position would exercise under similar circumstances; and

(c)	in a manner the director or officer reasonably believes to be in the best interests of the association.

(2)

In performing his duties, a director or officer may rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

(a)	one or more officers or employees of the association whom the director or officer reasonably believes to be reliable and competent in the matters presented;

(b)	legal counsel, public accountants, or other persons as to matters the director or officer reasonably believes are within the person's professional or expert competence; or

(c)	in the case of a director, a committee of the board of directors of which he is not a member, if the director reasonably believes the committee merits confidence.

(3)	A director or officer is not acting in good faith if he has knowledge that makes reliance otherwise permitted by Subsection (2) unwarranted.

(4)

A director or officer is not liable to the association, its members, or any conservator or receiver, or any assignee or successor-in-interest thereof, for any action taken, or any failure to take any action, as an officer or director unless:

(a)	the director or officer has breached or failed to perform the duties of the office in compliance with this section; and

(b)	the breach or failure to perform constitutes gross negligence, willful misconduct, or intentional infliction of harm on the association or the members.

Enacted by Chapter 204, 1994 General Session

Source: official Utah text · Last verified 2026-08-27

Frequently Asked Questions About Utah § 3-1-13.3

What does Utah Code § 3-1-13.3 cover?

Section 3-1-13.3 ("General standards of conduct for directors and officers.") is part of the Utah Code, the codified statutory law of Utah. 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 Utah § 3-1-13.3?

A common citation format is "Utah Code § 3-1-13.3" (Utah). 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 Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 3-1-13.3 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Official text of § 3-1-13.3 at the Utah source

Not legal advice. Verify against the official source and consult a licensed attorney in Utah.