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.

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A1051-2011 Actions

• May 12, 2011: enacting clause stricken
• Jan 5, 2011: referred to corporations, authorities and commissions

A1051-2011 Text

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

                                    1051

                         2011-2012 Regular Sessions

                            I N  ASSEMBLY

                                 (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