(1) A director shall not be liable to the corporation or its shareholders for any decision to take or not to take action, or any failure to take any action, as a director, unless the party asserting liability in a proceeding establishes that: (a) Any provision in the articles of incorporation authorized by section 30-1-202 (2)(d), Idaho Code, or the protection afforded by section 30-1-861 , Idaho Code, for action taken in compliance with section 30-1-862 or 30-1-863 , Idaho Code, if interposed as a bar to the proceeding by the director, does not preclude liability; and (b) The challenged conduct consisted or was the result of: (i) Action not in good faith; or (ii) A decision: (iii) A lack of objectivity due to the director's familial, financial, or business relationship with, or a lack of independence due to the director's domination or control by, another person having a material interest in the challenged conduct: (iv) A sustained failure of the director to be informed about the business and affairs of the corporation, or other material failure of the director to discharge the oversight function; or (v) Receipt of a financial benefit to which the director was not entitled or any other breach of the director's duties to deal fairly with the corporation and its shareholders that is actionable under applicable law. (2) The party seeking to hold the director liable: (a) For money damages, shall also have the burden of establishing that: (i) Harm to the corporation or its shareholders has been suffered; and (ii) The harm suffered was proximately caused by the director's challenged conduct; or (b) For other money payment under a legal remedy, such as compensation for the unauthorized use of corporate assets, shall also have whatever persuasion burden may be called for to establish that the payment sought is appropriate in the circumstances; or (c) For other money payment under an equitable remedy, such as profit recovery by or disgorgement to the corporation, shall also have whatever persuasion burden may be called for to establish that the equitable remedy sought is appropriate in the circumstances. (3) Nothing contained in this section shall: (a) In any instance where fairness is at issue, such as consideration of the fairness of a transaction to the corporation under section 30-1-861 (2)(c), Idaho Code, alter the burden of proving the fact or lack of fairness otherwise applicable; (b) Alter the fact or lack of liability of a director under another section of this chapter, such as the provisions governing the consequences of an unlawful distribution under section 30-1-833 , Idaho Code, or a transactional interest under section 30-1-861 , Idaho Code; or (c) Affect any rights to which the corporation or a shareholder may be entitled under another statute of this state or the United States.
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