Liability of volunteer directors and officers
- Statute:
- California §7231.5 · Chapter CORP (Nonprofit Mutual Benefit Corporation Law)
- Topic:
- Officers & Directors · Volunteer shield
- Applies to:
- Nonprofit associations
A volunteer director or volunteer executive officer of a nonprofit mutual benefit corporation has no liability for a failure to discharge duties if the person performed them in good faith, in the corporation's best interests, and with ordinary-prudent-person care. Reimbursement of expenses does not destroy volunteer status.
📄 Read the official text at leginfo.legislature.ca.gov →
How SoShiny helps with Liability of volunteer directors and officers
SoShiny keeps your board roster, officer titles (President, VP, Secretary, Treasurer, Director), and election history current in one place — so the statutory requirement to identify directors and officers is always one click away.
See the feature → Start freeFrequently asked
- What does California §7231.5 require?
- A volunteer director or volunteer executive officer of a nonprofit mutual benefit corporation has no liability for a failure to discharge duties if the person performed them in good faith, in the corporation's best interests, and with ordinary-prudent-person care. Reimbursement of expenses does not destroy volunteer status.
- Who does California §7231.5 apply to?
- California §7231.5 applies to Nonprofit associations in California.
- What happens if our nonprofit corporation doesn't comply with §7231.5?
- Non-compliance can expose the association and individual directors to disputes in the governing forum for California community associations. SoShiny's audit trail and documented workflows are designed to demonstrate good-faith compliance.
- Where can I read the official text of California §7231.5?
- The official text is published by the California Legislature at leginfo.legislature.ca.gov. The summary on this page is for plain-English reference only and is not legal advice.
- How does SoShiny help with Liability of volunteer directors and officers?
- SoShiny keeps your board roster, officer titles (President, VP, Secretary, Treasurer, Director), and election history current in one place — so the statutory requirement to identify directors and officers is always one click away. Learn more →
Not legal advice. This page is a plain-English summary of California §7231.5 prepared by SoShiny for board members and managers. For binding legal advice or interpretation, consult a California-licensed attorney. For the official statutory text, see the link above.
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