79-11-275 - Officers to act in best interests of corporation; reliance upon others for information; liability of officers. - Mississippi Statutes

§ 79-11-275. Officers to act in best interests of corporation; reliance upon others for information; liability of officers.
 

(1)  An officer with discretionary authority shall discharge his duties under that authority, in accordance with his good faith belief that he is acting in the best interests of the corporation. 

(2)  Unless he has knowledge or information concerning the matter in question that makes reliance unwarranted, an officer is entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, if prepared or presented by: 

(a) One or more officers or employees of the corporation whom the officer believes, in good faith, to be reliable and competent in the matters presented; or 

(b) Legal counsel, public accountants or other persons as to matters the officer believes, in good faith, are within the person's professional or expert competence. 

(3)  An officer is not liable for any action taken as an officer, or any failure to take any action, if he performed the duties of his office in compliance with this section. 

(4)  A person alleging a violation of this section has the burden of proving the violation. 
 

Sources: Laws,  1987, ch. 485, § 88, eff from and after January 1, 1988.