2007 Minnesota Statutes

302A.251 STANDARD OF CONDUCT.
    Subdivision 1. Standard; liability. A director shall discharge the duties of the position of
director in good faith, in a manner the director reasonably believes to be in the best interests of the
corporation, and with the care an ordinarily prudent person in a like position would exercise under
similar circumstances. A person who so performs those duties is not liable by reason of being
or having been a director of the corporation.
    Subd. 2. Reliance. (a) A director is entitled to rely on information, opinions, reports,
or statements, including financial statements and other financial data, in each case prepared
or presented by:
(1) one or more officers or employees of the corporation whom the director reasonably
believes to be reliable and competent in the matters presented;
(2) counsel, public accountants, or other persons as to matters that the director reasonably
believes are within the person's professional or expert competence; or
(3) a committee of the board upon which the director does not serve, duly established in
accordance with section 302A.241, as to matters within its designated authority, if the director
reasonably believes the committee to merit confidence.
(b) Paragraph (a) does not apply to a director who has knowledge concerning the matter in
question that makes the reliance otherwise permitted by paragraph (a) unwarranted.
    Subd. 3. Presumption of assent; dissent. A director who is present at a meeting of the
board when an action is approved by the affirmative vote of a majority of the directors present is
presumed to have assented to the action approved, unless the director:
(a) objects at the beginning of the meeting to the transaction of business because the meeting
is not lawfully called or convened and does not participate thereafter in the meeting, in which case
the director shall not be considered to be present at the meeting for any purpose of this chapter;
(b) votes against the action at the meeting; or
(c) is prohibited by section 302A.255 from voting on the action.
    Subd. 4. Elimination or limitation of liability. A director's personal liability to the
corporation or its shareholders for monetary damages for breach of fiduciary duty as a director
may be eliminated or limited in the articles. The articles shall not eliminate or limit the liability of
a director:
    (a) for any breach of the director's duty of loyalty to the corporation or its shareholders;
    (b) for acts or omissions not in good faith or that involve intentional misconduct or a
knowing violation of law;
    (c) under section 302A.559 or 80A.76;
    (d) for any transaction from which the director derived an improper personal benefit; or
    (e) for any act or omission occurring prior to the date when the provision in the articles
eliminating or limiting liability becomes effective.
    Subd. 5. Considerations. In discharging the duties of the position of director, a director may,
in considering the best interests of the corporation, consider the interests of the corporation's
employees, customers, suppliers, and creditors, the economy of the state and nation, community
and societal considerations, and the long-term as well as short-term interests of the corporation
and its shareholders including the possibility that these interests may be best served by the
continued independence of the corporation.
History: 1981 c 270 s 44; 1982 c 497 s 29,30; 1987 c 2 s 2; 1Sp1987 c 1 s 18; 1989 c
172 s 6; 2006 c 196 art 2 s 7
NOTE: The amendment to subdivision 4 by Laws 2006, chapter 196, article 2, section 7, is
effective August 1, 2007. Laws 2006, chapter 196, article 1, section 52.