13.1-870.2 - Limitation on liability of officers and directors; additional exception. - Virginia Statutes

§ 13.1-870.2. Limitation on liability of officers and directors; additionalexception.

A. As used in this section, "community association" shall mean anunincorporated association or corporation which owns or has under its care,custody or control real estate subject to a recorded declaration of covenantswhich obligates a person, by virtue of ownership of specific real estate, tobe a member of the unincorporated association or corporation.

B. In any proceeding against an officer or director who receives compensationfrom a community association for his services as such, the damages assessedarising out of a single transaction, occurrence or course of conduct shallnot exceed the amount of compensation received by the officer or directorfrom the association during the 12 months immediately preceding the act oromission for which liability was imposed. An officer or director who servessuch an association without compensation for his services shall not be liablefor damages in any such proceeding.

C. The liability of an officer or director shall not be limited as providedin this section if the officer or director engaged in willful misconduct or aknowing violation of the criminal law.

(1989, c. 422; 2007, c. 925.)