47-17-7.1. Directors not liable for distribution in good faith reliance on financial statements or accountant's representation.
A director of a cooperative shall not be liable for any unauthorized dividend or distribution of assets if he relied and acted in good faith upon financial statements of the cooperative represented to him to be correct by the president or the officer of the cooperative having charge of his books of account, or stated in a written report by a certified public accountant failing to reflect the financial condition of the cooperative, nor shall he be so liable if in good faith in determining the amount available for any such dividend or distribution he considered the assets to be of their book value.
Source: SL 1978, ch 338, ยง3.
Structure South Dakota Codified Laws
Chapter 17 - Cooperatives--Directors, Officers And Employees
Section 47-17-1 - Board of directors as manager of cooperative--Qualifications of directors.
Section 47-17-2 - Compensation of directors.
Section 47-17-3 - Number of directors.
Section 47-17-5 - Removal of directors.
Section 47-17-6 - Vacancies on board of directors.
Section 47-17-7 - Liability of directors for improper distribution of assets.
Section 47-17-8 - Board meetings.
Section 47-17-9 - Quorum at meeting.
Section 47-17-10 - Waiver of notice of meeting.
Section 47-17-11 - Specification of purpose of meeting.
Section 47-17-12 - Directors' executive committee--Powers of committee.
Section 47-17-13 - Action without meeting of directors--Written consent.
Section 47-17-14 - Principal officers of cooperative--Election by board of directors.
Section 47-17-15 - Other officers.
Section 47-17-16 - Authority of officers.
Section 47-17-17 - Removal of officers.
Section 47-17-18 - Compensation of officers.