Loading chat...
GA SB373
Bill
Status
Passed
6/29/2020
Primary Sponsor
John Kennedy
Click for details
AI Summary
- Amends standards of conduct for directors and officers of nonprofit corporations (Title 14) and electric membership corporations (Title 46), requiring them to perform duties in good faith and with the degree of care an ordinarily prudent person in a like position would exercise under similar circumstances
- Creates a rebuttable presumption that a director's or officer's decision-making process was done in good faith and with ordinary care, which can only be overcome by evidence of gross negligence constituting a gross deviation from the applicable standard of care
- Broadens the sources directors and officers may rely upon to include officers, employees, agents, legal counsel, public accountants, investment bankers, religious authorities, and other professionals reasonably believed to be reliable and competent in their areas of expertise
- Preserves existing protections by specifying the new provisions do not alter burden-of-proof rules in fairness disputes, change liability for unlawful distributions or conflicting interest transactions, affect rights under other state or federal law, or deprive directors and officers of the business judgment rule
- Applies only to causes of action arising on or after July 1, 2020
Legislative Description
Nonprofit Corporations; directors and officers of electric membership corporations and foreign electric cooperatives; provisions; change
Last Action
Effective Date
7/1/2020
Full Bill Text
No bill text available