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Tenn. Code Ann. § 43-38-611

Limitation of director's liability

Known as the Tennessee Processing Cooperative Law

The act spans §§ 43-38-1001 to 43-38-904 (150 sections).

Acts 2004, ch. 534, § 25.

(1) A director's personal liability to the cooperative or members for monetary damages for breach of fiduciary duty as a director may be eliminated or limited in the articles, except as provided in subsection (b).

(2) The articles may not eliminate or limit the liability of a director for: A breach of the director's duty of loyalty to the cooperative or its members;

(3) Acts or omissions that are not in good faith or involve intentional misconduct or a knowing violation of law;

(4) A transaction from which the director derived an improper personal benefit; or

(5) An act or omission occurring before the date when the provision in the articles eliminating or limiting liability becomes effective.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.