Public-domain · open source
OpenJurist

Va. Code Ann. § 13.1-870

General standards of conduct for directors

Known as the Virginia Nonstock Corporation Act

The act spans §§ 13.1-801 to 13.1-946 (183 sections).

Applied in 7 court decisions — leading case Tauber v. Commonwealth Ex Rel. Kilgore (2002)

Most recently applied in 421 U.S. App. D.C. 22 - National Security Counselors v. Central Intelligence Agency (January 2016)

1985, c. 522; 2007, c. 925.

How often courts cite this section

199720002010201620
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.

A. A director shall discharge his duties as a director, including his duties as a member of a committee, in accordance with his good faith business judgment of the best interests of the corporation.

B. Unless a director has knowledge or information concerning the matter in question that makes reliance unwarranted, a director is entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, if prepared or presented by:

1. One or more officers or employees of the corporation whom the director believes, in good faith, to be reliable and competent in the matters presented;

2. Legal counsel, public accountants, or other persons as to matters the director believes, in good faith, are within the person's professional or expert competence; or

3. A committee of the board of directors of which the director is not a member if the director believes, in good faith, that the committee merits confidence.

C. 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.

D. A person alleging a violation of this section has the burden of proving the violation.

Official source: Virginia Law Portal (LIS). Reproduced from public-domain Virginia statutes; confirm against the official source for the current text. Not legal advice.