Section 14-2-830. General standards for directors

   (a) A director shall discharge his duties as a director, including his duties as a member of a committee:

   (1) In a manner he believes in good faith to be in the best interests of the corporation; and

   (2) With the care an ordinarily prudent person in a like position would exercise under similar circumstances.

(b) In discharging his duties a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if 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) Legal counsel, public accountants, investment bankers, or other persons as to matters the director reasonably believes are within the person's professional or expert competence; or

   (3) A committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.

(c) In the instances described in subsection (b) of this Code section, a director is not entitled to rely if he has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (b) of this Code section unwarranted.

(d) A director is not liable to the corporation or to its shareholders for any action taken as a director, or any failure to take any action, if he performed the duties of his office in compliance with this Code section.

Code 1981, § 14-2-830, enacted by Ga. L. 1988, p. 1070, § 1.