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Current as of January 01, 2024 | Updated by FindLaw Staff
(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.
Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 3.105. Rights of Officers in Certain Cases - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-3-105/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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