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501.407 Personal liability.

The articles may contain a provision eliminating or limiting the personal liability of a director, officer, or shareholder of the cooperative for monetary damages for breach of a fiduciary duty as a director, officer, or shareholder, provided that the provision does not eliminate or limit liability for any of the following:

1. A breach of the duty of loyalty to the cooperative or its shareholders.

2. An act or omission not in good faith or which involves intentional misconduct or a knowing violation of law.

3. A transaction from which the director, officer, or shareholder derives an improper personal benefit.

4. An act or omission occurring prior to the date when the provision in the articles becomes effective.

Section History: Recent form

96 Acts, ch 1010, §28

Internal References

Referred to in § 501.406

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Last update: Mon Jan 27 16:05:08 CST 1997
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