Senate File 271 - Introduced SENATE FILE BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SSB 1092) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the duties of directors of nonprofit 2 corporations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1074SV 82 5 av/gg/14 PAG LIN 1 1 Section 1. Section 504.831, subsections 2 and 4, Code 1 2 2007, are amended to read as follows: 1 3 2. The members of the board of directors or a committee of 1 4 the board, when becoming informed in connection with their 1 5 decision=making functions or when devoting attention to their 1 6 oversight functions, shall discharge their duties with the 1 7 care that a person in a like position would reasonably believe 1 8 appropriate under similar circumstances. 1 9 4. In discharging board or committee duties, a director 1 10 who does not have knowledge that makes reliance unwarranted, 1 11 is entitled to rely on information, opinions, reports, or 1 12 statements, including financial statements and other financial 1 13 data, if prepared or presented by any of the persons specified 1 14 in subsection 5. 1 15 EXPLANATION 1 16 This bill relates to standards for the performance of 1 17 certain duties by directors of nonprofit corporations. 1 18 Code section 504.831 is amended to require directors to 1 19 devote attention to their oversight functions with the care 1 20 that a person in a like position would reasonably believe 1 21 appropriate under similar circumstances. The bill also 1 22 authorizes directors to rely on certain information, opinions, 1 23 reports, or statements presented to them so long as they do 1 24 not have knowledge that makes the reliance unwarranted. 1 25 LSB 1074SV 82 1 26 av:rj/gg/14