South Dakota Codified Laws 47-1A-842.1. Reliance on performance of or information supplied by specified persons authorized in discharge of duties
In discharging those duties, an officer, who does not have knowledge that makes reliance unwarranted, is entitled to rely on:
(1) The performance of properly delegated responsibilities by one or more employees of the corporation whom the officer reasonably believes to be reliable and competent in performing the responsibilities delegated; or
Terms Used In South Dakota Codified Laws 47-1A-842.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes an individual and an entity. See South Dakota Codified Laws 47-1A-140
(2) Information, opinions, reports, or statements, including financial statements and other financial data, prepared or presented by one or more employees of the corporation whom the officer reasonably believes to be reliable and competent in the matters presented or by legal counsel, public accountants, or other persons retained by the corporation as to matters involving skills or expertise the officer reasonably believes are matters within the particular person‘s professional or expert competence or as to which the particular person merits confidence.
Source: SL 2005, ch 239, § 167.