NRS81.840. Duties of managers.

      1.  A manager owes to the unincorporated nonprofit association and to its members the fiduciary duties of loyalty and care.

      2.  A manager shall manage the unincorporated nonprofit association in good faith, in a manner the manager reasonably believes to be in the best interests of the association, and with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances. A manager may rely in good faith upon 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.

      3.  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.

      4.  A manager that makes a business judgment in good faith satisfies the duties specified in subsection 1 if the manager:

      (a) Is not interested, directly or indirectly, in the subject of the business judgment and is otherwise able to exercise independent judgment;

      (b) Is informed with respect to the subject of the business judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and

      (c) Believes that the business judgment is in the best interests of the unincorporated nonprofit association and in accordance with its purposes.

      5.  The governing principles in a record may limit or eliminate the liability of a manager to the unincorporated nonprofit association or its members for damages for any action taken, or for failure to take any action, as a manager, except liability for:

      (a) The amount of financial benefit improperly received by a manager;

      (b) An intentional infliction of harm on the association or one or more of its members;

      (c) An intentional violation of criminal law;

      (d) Breach of the duty of loyalty; or

      (e) Improper distributions.

      (Added to NRS by 2009, 697)