Public-domain · open source
OpenJurist

Ark. Code Ann. § 4-27-830

General standards for directors

Known as the Arkansas Business Corporation Act

The act spans §§ 4–4 (323 sections).

Applied in 6 court decisions — leading case Wal-Mart Stores, Inc. v. Coughlin (2007)

Most recently applied in 2025 Ark. App. 122 - Crain v. Crain (February 2025)

Acts 1987, No. 958, § 64-818.

How often courts cite this section

1994200020102020202520
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(1) A director shall discharge his duties as a director, including his duties as a member of a committee: in good faith;

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

(3) in a manner he reasonably believes to be in the best interests of the corporation.

(4) 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;

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

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

(7) 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.

(8) 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.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.