Texas Business Organizations Code - Section 3.105. Rights Of Officers In Certain Cases
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Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 3.105. Rights Of Officers In Certain Cases
§ 3.105. RIGHTS OF OFFICERS IN CERTAIN CASES. (a) In
discharging a duty or exercising a power, an officer of a domestic
entity may, in good faith and ordinary care, rely on information,
opinions, reports, or statements, including financial statements
and other financial data, concerning the entity or another person
and prepared or presented by:
(1) another officer or an employee of the entity;
(2) legal counsel;
(3) a certified public accountant;
(4) an investment banker; or
(5) a person who the officer reasonably believes
possesses professional expertise in the matter.
(b) An officer may not in good faith rely on the information
described by Subsection (a) if the officer has knowledge of a matter
that makes the reliance unwarranted.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 3.061 3.062 3.063 3.101 3.102 3.103 3.104 3.105 3.151 3.152 3.153 3.201 3.202 3.203 3.204
Last modified: August 11, 2007
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