Section 47-17-7.1 - Directors not liable for distribution in good faith reliance on financial statements oraccountant's representation. - South Dakota Statutes

47-17-7.1. Directors not liable for distribution in good faith reliance on financial statements or accountant's representation. A director of a cooperative shall not be liable for any unauthorized dividend or distribution of assets if he relied and acted in good faith upon financial statements of the cooperative represented to him to be correct by the president or the officer of the cooperative having charge of his books of account, or stated in a written report by a certified public accountant failing to reflect the financial condition of the cooperative, nor shall he be so liable if in good faith in determining the amount available for any such dividend or distribution he considered the assets to be of their book value.

Source: SL 1978, ch 338, § 3.