Assembly Bill A1051

2011-2012 Legislative Session

Protects directors, officers and trustees of certain corporations from liability

download bill text pdf

Sponsored By

Archive: Last Bill Status - Stricken

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-A1051 (ACTIVE) - Details

See Senate Version of this Bill:
S3003
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd §720-a, N-PC L
Versions Introduced in 2009-2010 Legislative Session:
A279, S213

2011-A1051 (ACTIVE) - Summary

Limits the civil liability of directors, officers and trustees of corporations described in §501 (c) (4) of the internal revenue code (charitable organizations) under provisions that limit their civil liability in certain cases.

2011-A1051 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1051

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by M. of A. PHEFFER -- Multi-Sponsored by -- M. of A. COOK --
  read  once  and referred to the Committee on Corporations, Authorities
  and Commissions

AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
  liability of directors, officers and trustees of certain corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 720-a of the  not-for-profit  corporation  law,  as
added by chapter 220 of the laws of 1986, is amended to read as follows:
S 720-a. Liability of directors, officers and trustees.
  Except  as  provided  in  sections  seven  hundred  nineteen and seven
hundred twenty of this [chapter]  ARTICLE,  and  except  any  action  or
proceeding  brought by the attorney general or, in  the case of a chari-
table trust, an action or proceeding against  a  trustee  brought  by  a
beneficiary  of  such trust, no person serving without compensation as a
director, officer or trustee of a corporation, association, organization
or trust described in section 501 (c) (3) OR 501 (C) (4) of  the  United
States  internal  revenue  code shall be liable to any person other than
such corporation, association, organization or trust based solely on his
or her conduct in the execution of such office  unless  the  conduct  of
such  director,  officer or trustee with respect to the person asserting
liability constituted gross negligence or  was  intended  to  cause  the
resulting  harm  to the person asserting such liability. For purposes of
this section, such a director, officer or trustee shall not  be  consid-
ered  compensated  solely  by  reason  of  payment  of his or her actual
expenses incurred in attending meetings or otherwise in the execution of
such office.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00368-01-1

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