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This entry was published on 2014-09-22
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Duty of directors and officers
§ 471. Duty of directors and officers. 1. Directors and officers shall
discharge the duties of their respective positions in good faith and
with that degree of diligence, care and skill which a prudent person
would exercise under similar circumstances in like positions. In
discharging their duties, directors and officers, when acting in good
faith, may rely (a) upon financial statements of the credit union
represented to them to be correct by the executive officer or the
officer of the credit union having charge of the books of account, or
stated in a written report by an independent public or certified public
accountant or firm of such accountants fairly to reflect the financial
condition of such credit union, and (b) upon reports required to be
submitted to them by any provision of this chapter or prepared in the
ordinary course of business by an officer or committee charged with the
responsibility therefor. Nothing in this section shall be deemed to
require the directors to perform functions vested in any committee,
officer or other person pursuant to the provisions of any other section
of this chapter.

2. An action may be brought against one or more directors or officers
of a credit union to procure a judgment for the following relief:

(a) To compel the defendant to account for his official conduct in the
following cases:

(i) The neglect of, or failure to perform, or other violation of his
duties in the management and disposition of the credit union's assets
committed to his charge.

(ii) The acquisition by himself, transfer to others, loss or waste of
the credit union's assets due to any neglect of or failure to perform,
or other violation of his duties.

(b) To set aside a conveyance, assignment or transfer of the credit
union's assets by one or more directors or officers, contrary to a
provision of law, where the transferee knew the purpose of the transfer.

(c) To enjoin such a conveyance, assignment or transfer of the credit
union's assets by one or more of the directors or officers where there
is good reason to apprehend that it will be made.

3. Subject to section six hundred thirty-one of this chapter, an
action may be brought for the relief provided in this section by a
credit union or an officer, director or judgment creditor thereof.

4. This section shall not affect any liability otherwise imposed by
law upon any director or officer.