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HomeCorporations CodeCh. 2Art. 3§ 7230 Director Duties And Liabilities

§ 7230 Director Duties And Liabilities

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7230 Director Duties And Liabilities

Key Takeaways

  • •Directors have the same responsibilities whether they get paid or not.
  • •Special rules for trusts don’t apply to directors of companies.

Example

A person is a director of a small company but doesn’t get paid for it.

Even if they don’t get paid, they still have to follow all the rules and responsibilities of being a director.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7230 Director Duties And Liabilities

(a) Any duties and liabilities set forth in this article shall apply without regard to whether a director is compensated by the corporation. (b) Part 4 (commencing with Section 16000) of Division 9 of the Probate Code does not apply to the directors of any corporation. (Amended by Stats. 1987, Ch. 923, Sec. 1.3. Operative January 1, 1988, by Sec. 103 of Ch. 923.)

Last verified: January 23, 2026

Key Terms

duties and liabilitiesdirectorcompensatedPart 4Division 9Probate Code

Related Statutes

  • § 5230 Director Duties Liability
  • § 12370 Director Duties And Liabilities
  • § 12371 Director Duties And Reliance
  • § 12377 Corporate Agent Indemnification Rules
  • § 5233 Director Self-Dealing Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 7230.
View Official Source