General standards of conduct for directors and officers
- Statute:
- Colorado §7-128-401 · Part NP (Colorado Revised Nonprofit Corporation Act)
- Topic:
- Board Duties · Fiduciary duty
- Applies to:
- Nonprofit associations
Each director, and each officer with discretionary authority, must act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner the director or officer reasonably believes to be in the best interests of the corporation. They may rely on officers, counsel, and accountants they reasonably believe are reliable. CCIOA §38-33.3-303(2.5) applies this standard to association reserve-fund investing.
📄 Read the official text at leg.colorado.gov →
How SoShiny helps with General standards of conduct for directors and officers
SoShiny is built around the Florida statutes from day one. The features that help you comply with this section are part of every plan — no add-ons, no per-document fees.
See the feature → Start freeFrequently asked
- What does Colorado §7-128-401 require?
- Each director, and each officer with discretionary authority, must act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner the director or officer reasonably believes to be in the best interests of the corporation. They may rely on officers, counsel, and accountants they reasonably believe are reliable. CCIOA §38-33.3-303(2.5) applies this standard to association reserve-fund investing.
- Who does Colorado §7-128-401 apply to?
- Colorado §7-128-401 applies to Nonprofit associations in Colorado.
- What happens if our nonprofit corporation doesn't comply with §7-128-401?
- Non-compliance can expose the association and individual directors to disputes in the governing forum for Colorado community associations. SoShiny's audit trail and documented workflows are designed to demonstrate good-faith compliance.
- Where can I read the official text of Colorado §7-128-401?
- The official text is published by the Colorado General Assembly at leg.colorado.gov. The summary on this page is for plain-English reference only and is not legal advice.
- How does SoShiny help with General standards of conduct for directors and officers?
- SoShiny is built around the Florida statutes from day one. The features that help you comply with this section are part of every plan — no add-ons, no per-document fees. Learn more →
Not legal advice. This page is a plain-English summary of Colorado §7-128-401 prepared by SoShiny for board members and managers. For binding legal advice or interpretation, consult a Colorado-licensed attorney. For the official statutory text, see the link above.
Stay current on Colorado association law.
Get the free quick-reference guide plus a heads-up when the statutes that govern your community change.
Don’t run your nonprofit corporation on spreadsheets.
Start your community free →