Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 91 - Unincorporated Nonprofit Associations
Section 9129 - Duties of managers

(a) Duty of care.--
(1) A manager shall manage the nonprofit association:
(i) in good faith;
(ii) in a manner the manager reasonably believes to be in the best interests of the nonprofit association; and
(iii) with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances.
(2) A manager may rely in good faith on any opinion, report, statement or other information provided by another person that the manager reasonably believes is a competent and reliable source for the information.
(b) Conflicts of interest.--
(1) A manager owes a fiduciary duty of loyalty to the nonprofit association with respect to the responsibilities of the manager.
(2) After full disclosure of all material facts, a specific act or transaction that would otherwise violate the duty of loyalty by a manager may be authorized or ratified by a majority of the members that are not interested directly or indirectly in the act or transaction.
(c) Presumption.--A manager that makes a judgment in good faith satisfies the duties specified in subsection (a) if the manager:
(1) is not interested, directly or indirectly, in the subject of the judgment and is otherwise able to exercise independent judgment;
(2) is informed with respect to the subject of the judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and
(3) believes that the judgment is in or not opposed to the best interests of the nonprofit association.
(d) Limitation of liability.--
(1) Except as set forth in paragraph (2), the governing principles in record form may provide that a manager shall not be personally liable, as a manager, for monetary damages for any action taken unless:
(i) the manager has breached or failed to perform the manager's duties under this chapter; and
(ii) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness.
(2) Paragraph (1) shall not apply to:
(i) the responsibility or liability of a manager under a criminal statute; or
(ii) the liability of the manager for the payment of taxes under Federal, State or local law.
(July 9, 2013, P.L.476, No.67, eff. 60 days)

2013 Amendment. Act 67 added section 9129.